Tesco: We will not drop suppliers

RETAILING giant Tesco yesterday denied having plans to drop any of its Irish-based milk suppliers after the company ended a €90 million contract with a major British dairy earlier this week.

Tesco Ireland said it had "no immediate plans" to consolidate its Irish milk supply even though the retailer's British parent will cut its milk suppliers from three to two from January.

Tesco Ireland currently sources own-brand milk from Glanbia, Kerry Dairies, Golden Vale, Cork's CMP and Donegal Creameries. It sparked a milk price war by aggressively cutting milk prices and significantly undercutting smaller retailers. Tesco branded milk is on offer in its Irish shops at 69c per litre, or €1.19 for a two-litre bottle.