The Real Good Food Company (RGFC) has negotiated two new supply contracts as it takes its complaint against British Sugar to the European Competition Authorities in Brussels.
Both new contracts will utilise the company’s Stallingborough import facility. From October a major supply contract with Suiker Unie in the Netherlands, which develops, produces and markets sugar and sugar specialities, has been agreed with a contract for a ‘significant quantity’ of cane sugar from Mauritius from 2015 about to be finalised.
Whitworths brand in Asda has been retained for another year and Sainsbury’s will use the company to pack all its private-label sugar from October.
Meanwhile, UK sugar distributor Napier Brown, owned by RGFC, yesterday announced it was planning to take its dispute with British Sugar to the European Complaint Authorities. This follows the Competition and Markets Authority’s (CMA) decision not to open an investigation into the company’s complaint against British Sugar regarding unfair competition, after it had not passed the CMA’s prioritisation procedure.
Pieter Totté, chairman of RGFC, said: “We updated the market yesterday on the CMA’s response to our complaint against British Sugar which has dominated the past 12 months. We are extremely disappointed that the Regulatory Authorities here in the UK have decided not to prioritise this case and we will now take up the matter with the European Competition Authorities in Brussels.
“As British Sugar had decided to change the way in which it traded with us, we had no choice but to pursue our case. While the result is unhelpful, the clarity is important and will determine our strategy.
“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.”