Shop price annual inflation accelerated to 1.5 per cent in January, up from 0.8 per cent in December, marking the highest rate of inflation since December 2012.
The figure from the BRC-NielsenIQ Shop Price Index stands in way above to the 12-month average decrease of 0.6 per cent and 6-month average price rise of 0.1 per cent.
Food prices continued to rise, impacted by poor harvests, labour shortages, and rising global food prices. Food inflation accelerated to 2.7% in January, up from 2.4% in December, above the 12- and 6-month average price growth rates of 0.5% and 1.1%, respectively. This is the highest inflation rate since October 2013.
Fresh food inflation slowed slightly in January to 2.9%, down from 3.0% in December, but ambient food inflation accelerated to 2.4%, up from 1.7% in December, the highest rate of increase since November 2020.
Non-Food inflation accelerated to 0.9% in January compared to a fall of 0.2% in December.
“The rise in shop prices is playing into wider UK inflation, which is pushing cost of living to the forefront of the political agenda. Many households will find it difficult to absorb the additional costs, as well as others on the horizon,” Helen Dickinson, chief executive of the British Retail Consortium (BRC), said:
“Retailers are working hard to cut costs, but it would be impossible to protect consumers from any future rises. As commodity prices, energy prices and transportation costs continue to rise, it is inevitable that retail prices will continue to follow in the future.”
Mike Watkins, head of retailer and business insight, NielsenIQ, said a recent separate study by them has shown that the rising cost of living is the most important concern at the moment for nearly half of all households.
“This will mean stores will need to encourage cash-strapped customers to keep shopping and despite the increase in shop prices, retailers are responding by keeping price increases as low possible for as long as possible,” he added.
The Scottish Grocers’ Federation (SGF), the Trade Association for the Scottish Convenience sector, said that small retailers are desperate to invest in their businesses, and take advantage of new technologies and sustainable practices, but many stores are now struggling to stay viable.
SGF has called on the Scottish Finance Secretary to ensure that 40% reliefs on Non-Domestic Rates announced for retail businesses south of the border are passed on to Scottish stores. Alongside the extra reliefs, SGF say that the Scottish Government should focus on growth by ringfencing funding through the Small Business Bonus Scheme and freezing poundage for the foreseeable future.
“The Scottish Government has a real opportunity to boost growth in communities across Scotland, and help rejuvenate town centres, by passing on the NDR reliefs announced by the Chancellor," said SGF Chief Executive, Dr Pete Cheema OBE.
“In past years, convenience stores in England have benefited from 75 per cent reliefs, that support has dropped to 40 per cent this year, but it could still be crucial in helping put the Scottish Economy back on track.
“Many SGF members, and small store across Scotland, are facing a raft of challenges. Alongside increases to National Insurance Contributions, hire wage rates, higher inflation, energy costs and the cost-of-living crisis. Not to mention a pile on of regulation across a range of product categories.
“Scottish Businesses have been operating at an economic disadvantage to our counterparts in England. Sorting out the damaging impact of business rates on economic growth and small business in Scotland is a no brainer.”
SGF has also called for an uplift for Police Scotland and Scottish Justice to help tackle the sharp increase in retail crime which is having a significant impact on business viability.
Allwyn, operator of The National Lottery, today announces the appointment of Alison Acquaye-Acford as Director of Commercial Partnerships and Retail Sales.
With a career in retail spanning almost three decades, Alison joins Allwyn from Acosta Europe where, in her role as Business Unit Director, she was responsible for transforming the growth of client brands including Red Bull. She also spearheaded various revenue-driving projects that contributed to Acosta’s most successful year yet.
Prior to this, Alison held senior leadership roles for seven years at Pepsico with a focus on Pipers Crisps – overseeing the growth of its independent retailer customer base, leading the integration of teams after its acquisition by Pepsico, and bringing in innovative technology to increase sales and engagement.
Alison has also held roles at Heineken UK, GlaxoSmithKline, Coca-Cola and Schweppes Beverages.
“I’m delighted to be joining Allwyn and leading retail operations at such an exciting time for the business," said Alison. "Everyone knows the amazing good that The National Lottery does – whether that’s winners winning life-changing prizes, or the Good Causes making lives better around the UK every single day. It clearly has an incredibly important role in the UK and its success would not be possible without the commitment and advocacy of our retail partners.”
Allwyn’s Operations Director, Jenny Blogg, said, “With the appointment of Alison, we’re bringing in an experienced senior leader who has a deep understanding of retail. This directly speaks to the enormous role our retail channel has in our exciting plans to restore the magic to The National Lottery and deliver responsible growth, enabling us to raise more money than ever before for Good Causes.”
Keep ReadingShow less
Climate activists march on a street to demand stronger global commitments to fight plastic waste at the fifth session of the Intergovernmental Negotiating Committee (INC-5), in Busan, South Korea, November 23, 2024
Countries negotiating a global treaty to curb plastic pollution failed to reach agreement on Monday, with more than 100 nations wanting to cap production while a handful of oil-producers were prepared only to target plastic waste.
The fifth UN Intergovernmental Negotiating Committee (INC-5) meeting intended to yield a legally binding global treaty in Busan, South Korea, was meant to be the final one.
However, countries remained far apart on the basic scope of a treaty and could agree only to postpone key decisions and resume talks, dubbed INC 5.2, to a later date.
"It is clear that there is still persisting divergence," said Inger Andersen, executive director of the UN Environment Programme.
The most divisive issues included capping plastic production, managing plastic products and chemicals of concern, and financing to help developing countries implement the treaty.
An option proposed by Panama, backed by more than 100 countries, would have created a path for a global plastic production reduction target, while another proposal did not include production caps.
The fault lines were apparent in a revised document released on Sunday by the meeting's chair Luis Vayas Valdivieso, which may form the basis of a treaty, but remained riddled with options on the most sensitive issues.
"A treaty that ... only relies on voluntary measures would not be acceptable," said Juliet Kabera, director general of Rwanda's Environment Management Authority.
"It is time we take it seriously and negotiate a treaty that is fit for purpose and not built to fail."
A small number of petrochemical-producing nations, such as Saudi Arabia, have strongly opposed efforts to reduce plastic production and have tried to use procedural tactics to delay negotiations.
"There was never any consensus," said Saudi Arabian delegate Abdulrahman Al Gwaiz. "There are a couple of articles that somehow seem to make it (into the document) despite our continued insistence that they are not within the scope."
China, the US, India, South Korea and Saudi Arabia were the top five primary polymer-producing nations in 2023, according to data provider Eunomia.
Entrenched divisions
Had such divisions been overcome, the treaty would have been one of the most significant deals relating to environmental protection since the 2015 Paris Agreement.
The postponement comes just days after the turbulent conclusion of the COP29 summit in Baku, Azerbaijan.
At Baku, countries set a new global target for mobilizing $300 billion annually in climate finance, a deal deemed woefully insufficient by small island states and many developing countries.
The climate talks were also slowed by procedural manoeuvres by Saudi Arabia – who objected to the inclusion of language that reaffirmed a previous commitment to transition away from fossil fuels.
Some negotiators said a few countries held the proceedings hostage, avoiding compromises needed by using the UN's consensus process.
Senegal's National Delegate Cheikh Ndiaye Sylla called it "a big mistake" to exclude voting during the entire negotiations, an agreement made last year during the second round of talks in Paris.
"This outcome underscores the complexity of addressing plastic pollution on a global scale and the need for further deliberations to achieve an effective, inclusive and workable treaty," said Chris Jahn, council secretary of the International Council of Chemical Associations (ICCA), representing plastic makers.
"There is little assurance that the next INC will succeed where INC-5 did not," environmental group GAIA said.
Plastic production is on track to triple by 2050, and microplastics have been found in the air, fresh produce and even human breast milk.
Chemicals found to be of concern in plastics include more than 3,200 according to a 2023 U.N. Environment Programme report, which said women and children were particularly susceptible to their toxicity.
Despite the postponement, several negotiators expressed urgency to get back into talks.
"Every day of delay is a day against humanity. Postponing negotiations does not postpone the crisis," said Panama's delegation head Juan Carlos Monterrey Gomez on Sunday.
"When we reconvene, the stakes will be higher."
(Reuters)
Keep ReadingShow less
In an aerial view, fall foliage is visible as grape vine leaves change colors at a vineyard on November 14, 2024 in Napa, California.
Global wine production is set to fall again this year to its lowest level since 1961 due to climate change, the International Organisation of Vine and Wine (OIV) said Friday.
Output is estimated to reach between 227 million and 235 million hectolitres in 29 countries accounting for 85 percent of global production, according to the intergovernmental organisation.
If production reaches the midpoint of 231 million hectolitres, it would be down 2 per cent from 2023 and a drop of 13 per cent compared to the average of the 10 previous years.
"Climatic challenges across both hemispheres are once again major contributors to the reduced global production volume," OIV said in a report.
"The preliminary estimates reveal a complex landscape of climatic disruptions across EU wine regions due to climate change," it said.
"As with 2023, extreme or atypical meteorological events are the key influence on global production, with early frosts, heavy rainfall, and prolonged drought dramatically impacting vineyard productivity."
European production, which accounts for 60 per cent of the global total, is down 11 per cent overall, with only Hungary and Portugal producing wine at levels near average. At current trends, Europe's production will be the lowest in the 21st century, according to OIV head of statistics Giorgio Delgrosso.
Output in France, the biggest producer last year, is set to fall by 23 per cent to 36.9 million hectolitres, the largest drop in the sector.
Italy recovered slightly from last year's low volume to reach 41 million hectolitres and reclaim the top spot ahead of France. Spain remains Europe's third-largest producer.
In the southern hemisphere, which accounts for about 20 per cent of world wine output, production is at its lowest in two decades.
OIV director John Barker said there was an "increasing volatility" and that southern countries could no longer make up for shortfalls when there are problems in northern-hemisphere countries.
He said the wine industry had to find answers to deal with the growing impact of climate change and sustainability.
"Only a small group of regions - notably the United States and several Eastern European countries including Hungary, Georgia, and Moldova - enjoyed more favourable climatic conditions, achieving average or above-average production volumes," OIV said.
The IWSR drinks consultancy said that wine consumption also fell by 3.9 per cent in the first six months of the year, mainly because of consumers changing habits.
Wine drinking has fallen 20 per cent since 2019, according to IWSR. It said that only consumption of Italian sparkling prosecco had increased in the first six months of 2024. Consumption of French champagne was down 8.6 per cent.
Britain's Supreme has bought out loss-making tea brand Typhoo Tea from administration in a 10.2 million pound deal, the fast-moving consumer products seller said on Monday (2).
The 120-year-old tea brand had fallen into administration in November due to declining sales and mounting debt pressures. A break-in at its Merseyside factory in August 2023 exacerbated the company's cost pressures, and the site was subsequently shuttered.
Typhoo generated revenues of about £20m for the year to 30 September, with a pre-tax loss of about £4.6m. The new owner said it plans to run Typhoo on a “capital-light, outsourced manufacturing model” in a bid to improve profits.
As stated by the FMCG giant, Supreme plans to turn Typhoo’s fortunes around by leveraging its efficient supply network to keep products flowing into stores, thereby reducing some of the costs which were dragging Typhoo down, and giving it a new lease of life.
The company’s decision to purchase Typhoo is a mix of sound business rationale and personal affinity.
Sandy Chadha, Supreme CEO, said, “I grew up with Typhoo. Drinking it and watching the ‘you only get an OO with Typhoo’ ads with Su Pollard from Hi-di-Hi. That was my era. Typhoo is such an iconic brand, and with Supreme’s distribution network and resources, we have the scope to grow and develop it.
“The acquisition of Typhoo Tea Ltd marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family. I believe Typhoo will thrive under our ownership, further benefitting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.
“We are very excited about these latest additions to our portfolio, which mean we can serve our existing customers even better and get acquainted with many new ones.”
Supreme PLC is a Manchester-based company that manufactures and supplies a variety of everyday items to supermarkets, specialist retailers and direct to consumers. These include Duracell and Energizer batteries, SCI-MX (sports nutrition), Sealions (nutritional supplements), Perfectly Clear drinks, and Black & Decker lighting. Supreme also supplies several brands of vapes, including its own-manufactured 88Vape.
The latest move is said to be part of a strategy by Supreme to expand its operations away from vaping, after buying the soft drinks business Clearly Drinks earlier this year, before a planned government crackdown on disposable vapes.