The market leader Tesco wants to increase the percentage of sales in healthy assortment from 58 to 65 in three years.
The plan is part of a broader approach to encourage its customers to eat healthier. To this end, the ingredients of products are adjusted, the promotion policy is changed and the company chooses a tripling of the supply of meat substitutes. The objectives are deliberately formulated publicly.
It isn’t exactly scientifically proven diet shift and more of a hype. This step will allow Tesco to be in the trend while maintaining the market dominance. Tesco is seeing increasing competition from other brands and is afraid to loose the leading positions. The new brands, such as Amazon (AMZN) seek to gain benefits over TESCO exactly by promoting ‘healthier’ diets.
A group of investors is trying to pressure Tesco, the UK’s largest supermarket, into selling healthier food and drink amid a growing obesity problem.
Investors led by pressure group ShareAction will ask shareholders to vote for their plan.
Tesco is due to hold its annual meeting in the summer.
The company insists that it already has a plan to make healthy and sustainable food available.
The UK has one of the highest rates of obesity in the world and obesity increases the risk of hospitalisation and death from a coronavirus infection, according to Public Health England.
If the investor group is successful, it will force Tesco to reveal more about the share of sales it makes on healthier food, and publish annual updates on how well it is improving that share.
The investors says rivals Sainsbury’s and Marks & Spencer have made similar commitments to selling healthier food and that Tesco, with a UK market share of just under 27%, should follow suit.
Ignacio Vazquez, senior manager at ShareAction, said: “As the UK’s largest food retailer, Tesco’s actions are of systemic importance in tackling obesity. But its prime market position has not yet translated into leadership on this critical issue.
“We hope that Tesco’s board will endorse the resolution and grasp the opportunity to help build a healthier UK post-Covid, while also improving its financial sustainability in the long-term.”