Real Good Food calls in OFT over sugar dispute

REAL Good Food Co, the Liverpool-based manufacturer and supplier of sugar and other catering ingredients, has reported British Sugar to the Office of Fair Trading (OFT) accusing it of abusing its dominant position in the market.

Real Good owns ingredients firms Napier Brown, Garrett, Renshaw, jam and bakery ingredients specialist R&W Scott and patisserie maker Haydens Bakery.

It said British Sugar, owned by Associated British Foods, has a monopoly over UK beet sugar supply which means Napier Brown has been forced to pay “over 95% of the imposed price” during the dispute.

The higher prices have “prevented Napier Brown from effectively competing commercially” and British Sugar temporarily withdrew supplies, according to Real Good.

Chairman Pieter Totté said: “Given the progress elsewhere within the group, which we have outlined in our previous updates, it is very disappointing that we find ourselves in the position where a major supplier is, in our view, abusing its dominant market position in the supply of sugar to us.

“If British Sugar is allowed to impose a price on Napier Brown, its largest customer and the UK’s largest reseller of sugar, without any reference to market pricing, the consequent impact on UK customers and consumers would be significant.”

More to follow…

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