Morrisons become the latest UK supermarket to be called out by investors over unhealthy food levels

British supermarket chain Morrisons has been targeted by activist shareholders over the amount of unhealthy food it sells.

British supermarket giant Morrisons has been targeted by activist shareholders over the amount of unhealthy food it sells.

Responsible investment group ShareAction said it, along with seven institutional investors, had written to Morrisons calling on it to boost sales of healthier food and drink products.

Last month, Tesco agreed to increase healthy food options to appease investors co-ordinated by ShareAction.

The investors noted that Morrisons has a target to increase the number of healthier own-brand products to 65% of all own-brand products by 2025 but said this did not go far enough.

“While Morrisons has made significant progress in reducing the calorie, salt and sugar content of its own-brand products, questions remain about the company’s strategy and overall exposure to growing regulatory pressure and consumer trends supporting healthier diets," said Ignacio Vazquez, senior manager at ShareAction, which co-ordinated the letter.

Morrisons’ shareholders have also overwhelmingly rejected the company’s pay report. More than 70% of investors voted against the pay plan for its top executives, at its AGM, although the vote was advisory and, so, not binding.

In March, Morrisons reported a halving of annual profit to £201m (€233m). CEO David Potts made £4.2m in the year, including an annual bonus of £1.7m.

Meanwhile, Tesco Ireland is to recruit 225 extra drivers to accommodate a rise in its home delivery grocery service. The move follows the recruitment of 1,150 new in-store roles last year.

• Reuters and Irish Examiner