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Profits defended.

Tesco bosses have denied making excess profits at the expense of growers.

David May, category technical manager, said: "We are sometimes charged with using our position to drive down suppliers' margins"--a charge he denies.

Speaking at the first UK Refresh conference held last week in London and attended by more than 250 producers, importers and distributors, May stressed that his view was supported by the recent government enquiry.

Apart from having to face retail competition, the high costs of land meant there was a relatively low return on capital investment in stores.

While May acknowledged that the supplier base overall was becoming more centralised, giving the establishment of Newco to supply Asda as an example, he said Tesco still had room to develop small regional suppliers.
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Title Annotation:Market Edge
Article Type:Brief Article
Geographic Code:4EUUK
Date:May 15, 2004
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