Tesco's Premier spat

29th Oct 2010 13:43

Premier Foods believes that it can resolve its dispute with Tesco, which is refusing to stock some lines of Hovis bread, in the next few weeks.Premier tried to pass on higher wheat costs but Tesco was having none of it. It has stopped selling the majority of Hovis bread products but does still sell some. Two of the 11 products Tesco is not stocking raise cash for the Poppy Appeal.Premier wanted to raise prices by between 5p and 10p a loaf. The price of wheat rose by more than 50% in the third quarter of 2010. Hovis is the biggest selling brand in the bread market. Chief executive Robert Schofield is confident that he can come to an agreement with Tesco.