Morrisons, one of many UK’s ‘large 4’ grocery store chains, has come below fireplace from traders who argue it’s lagging behind rivals in terms of the sale of wholesome foods and drinks merchandise.
A bunch of traders managing greater than US$1trn between them have voiced issues in a letter to Morrisons earlier than its AGM right now (10 June). They embrace NEST (the UK’s largest office pension scheme), Man’s & St Thomas’ Basis and Jo Hambro Capital Administration.
They counsel Morrisons is now the one publicly-listed UK grocery store that has not dedicated to shifting its gross sales towards more healthy merchandise, posing a danger to the enterprise amid regulatory and client tendencies in more healthy diets.
Not too long ago, the UK’s largest grocery store group, Tesco, set sales-based wholesome foods and drinks targets after an investor coalition filed a shareholder decision urging it to take action.
Now, seven institutional traders, coordinated by the stress group ShareAction, are calling on Morrisons – based mostly in West Yorkshire in northern England – to set related targets to extend gross sales of wholesome merchandise.
The letter, despatched by ShareAction chief govt Catherine Howarth to Morrisons chairman Andrew Higginson, urges the grocery store to reveal the share of whole meals and non-alcoholic drink annual gross sales by quantity made up of more healthy merchandise and to publish a long-term goal and a technique to considerably enhance that share and embrace an outline of progress on delivering in direction of such targets and strategic commitments in its annual experiences from 2022 onwards.
The letter learn: “We’re sending this letter right now calling on Morrisons to strengthen its ambition within the space of well being and diet and to extend transparency on this subject. Different main listed supermarkets are at the moment demonstrating larger management on this space.
“We recognize that Morrisons continues to ship annual reductions within the calorie, salt and sugar content material of its merchandise by means of reformulation and likewise that you simply count on 65% of own-brand merchandise to be more healthy by 2025. We additionally recognise that the corporate is targeted on making meals reasonably priced for all its prospects.”
It continued: “Whereas acknowledging Morrisons’ efforts, the corporate’s disclosure doesn’t but present traders or different stakeholders with a transparent image of its place and long-term technique. On this context, a current overview by the Entry to Vitamin Initiative of UK supermarkets’ commitments to advertise higher diets discovered that Morrisons reported data on solely 20% of all attainable indicators.
“Encouraging wholesome diets can be Morrisons’ space of weakest efficiency throughout main environmental and social subjects in accordance with the Meals Basis.”
Ignacio Vazquez, senior supervisor at ShareAction, added: “Traders need to higher perceive how supermarkets are taking accountability for his or her monumental affect on public well being. This implies concentrating on larger gross sales of more healthy merchandise – not simply the variety of merchandise – and making use of these targets to all merchandise, not simply their own-brand ranges.
“Whereas Morrisons has made vital progress in decreasing the calorie, salt and sugar content material of its own-brand merchandise, questions stay in regards to the firm’s technique and general publicity to rising regulatory stress and client tendencies supporting more healthy diets.”
Simply Meals has requested Morrisons, which has a ten% share of the UK grocery market, for a response to the traders’ calls for.