BRAND NEW PICTURE IN GROCERY MARKET - We have been hearing a lot recently about record food prices - with rice hitting all-time records on the volatile international commodity markets.
This morning the price of rice has fallen for the fifth day in a row - a 14% drop over five days taking it close to its biggest weekly decline in four years - as commodities go in and out of favour with investors who are also playing with oil and currencies.
While it might be cut-throat on the commodity markets, it is also cut-throat at the supermarkets, and changing prices are making everyday shoppers change their habits. Now supermarket retailers have to do more to hold onto their once-loyal customers.
In the UK Marks & Spencer is going so far as to plan selling other big-name food brands for the first time in its 85-year history. Analysts say it is being forced into this situation as other supermarket chains' products compete and as shoppers become more price aware.
John Ruddy, editor of Checkout magazine, said Aldi and Lidl were building their market share by opening stores in new territories, but some consumers were also shopping around more, and going to different stores for different products.
***
NEWS IN BRIEF - There are results this morning from British Airways - its revenue for the year to March was 3.1% higher at £8.7 billion. Profit before tax was 45% higher at £883m, despite a fuel bill of over £2 billion. BA uses about six million tonnes of jet fuel a year. Chief executive Willie Walsh said this was an outstanding result despite rising fuel prices and a significant economic slowdown in the last six months. BA staff are going to share a £35m bonus, and it will pay shareholders its first dividend since 2001.
TV3 three says it has no comment this morning about reports that it is in the running to buy Channel Six for €10m.
