The City roundup video: Are bully boy tactics endemic in food supply?

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The news that Mr Kipling maker Premier Foods has written to its suppliers to demand payments to retain lucrative contracts with the supermarket supplier has raised eyebrows.

However, for those entrenched in the food supply game will doubtless have been unsurprised.

For many years suppliers to the major supermarkets, and their suppliers in turn, have complained over payments demanded from them, short notice termination of contracts and hard-nosed price negotiations.

The news comes against a the background of a stark grocery industry typified by cut throat price slashing as major players attempt to compete with Aldi and Lidl. It appears bullying tactics could be endemic.

Ultimately it will be through manufacturers and suppliers working together with retailers to agree sustainable margins for all involved that these issues will be resolved.

However, that looks a long way off.

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