Real Good looks to Europe over British Sugar dispute

SUGAR and catering ingredients firm The Real Good Food Company is to take its complaint against British Sugar to the European competition authorities after the UK’s Competition and Markets Authority (CMA) declined to pursue the case.

Earlier in the year Liverpool-based Real Good accused British Sugar of abusing its dominant market position and warned its dispute with the company over pricing would have a “significant” impact on its full-year figures.

Yesterday Real Good said the CMA had ruled out a full investigation, explaining it would take around two years and that the strategic benefits would be outweighed by the risks and resources involved.

Real Good claimed its Napier Brown division has been forced to pay “over 95% of the imposed price” during a dispute with British Sugar. The higher prices “prevented Napier Brown from effectively competing commercially” and British Sugar temporarily withdrew supplies, according to the company.

Now it says it is “extremely disappointed” by the CMA’s decision not to prioritise the case and is turning to Europe. It has however negotiated two new contracts with suppliers in Holland and Mauritius. As well as Napier Brown and Garrett, Real Good also has the ingredients firm Renshaw, jam and bakery ingredients specialist R&W Scott and patisserie maker Haydens Bakery.

In an AGM statement chairman Pieter Totté added: “On the sales side we are pleased to have retained our Whitworths brand in Asda for another 12 months and are delighted that Sainsbury’s has chosen us to pack all its private label sugar from October this year. These supply deals and sales successes give our sugar business some stability going forward.

“Elsewhere in the group, I am delighted to say that trading at both Renshaw and Haydens continues to be very positive, with both businesses showing significant EBITDA growth in the first half of the year, which will go some way to mitigate the effects of the uncompetitive British Sugar price which continues until the end of this September.”