Price wars between the major multiples are causing bigger problems for food and drink suppliers than anything they have experienced for many years, as the big four supermarkets battle it out with each other.
The bread supply chain will not be affected by the supermarket price wars in the same way as milk, the Federation of Bakers’ director Gordon Polson has said.
The first evidence emerged this week of how supermarket price wars were helping to force food prices down. Food prices were 0.5% lower in the first two weeks of this month compared with the previous month, according to the British Retail Consortium (BRC).