Richard Brasher: Tesco has ‘liberated’ small suppliers...
Brasher, who will assume the newly-created role of chief executive of Tesco UK and Ireland next March, said: “I don’t hold with the view that large companies have a monopoly on good ideas and new inventions. The best ideas often come from small companies.”
Citing the examples of the Isle of Man Creamery (a small supplier of dairy products that has recently secured regional listings at Tesco) and fresh produce supplier Branston (which has grown with Tesco over the last 20 years), he said: “Businesses like Tesco can provide a strong and certain route to market. Retailers like Tesco can liberate suppliers and increase their potential.”
Commercial tension
As for the nature of relationships between Tesco and its suppliers, there was no point “conjuring up” an image of “cosy collaboration”, he said.
“The hallmark of our industry is not cosy collaboration. It’s competition. I believe in commercial tension between retailers and suppliers. I think it’s positive and I think it’s healthy. It’s made our industry more efficient as well as more creative."
The fact that this tension had “attracted almost as many column inches as the relationships on Eastenders” made it easy to forget that the UK food supply chain was admired all over the world, he said.
“The UK supply chain is held up as an ambition for other countries around the world to match. We’ve got one of the most efficient and effective supply chains in the world. It’s like organising the D-Day landings each and every day.
“Our fierce competition has served us well, but it seems to have encouraged us to talk more about the negatives than the positives. It’s time for us to pull together and talk with more confidence about our industry. It’s an engine of progress.”
