Month: December 2017

Mr Asher was educated at Nairn Academy and attended Manchester Polytechnic where he studied Food Technology. He worked for the family bakery business for a year after finishing college and spent a year in Australia. From 1988 to 1991 he was a buyer for Associated British Foods in Knightsbridge and was responsible for purchasing a range of products for a multi-national food company. Since 1991 he has worked at the family business and is now Joint Managing Director of Ashers Bakery, Ltd in Nairn. They have 12 retail outlets around Moray Firth area, employing 160 people.

Mr Asher has held a number of other voluntary positions, from Chairman of the Nairn Round Table which involves raising funds for the community, to Director of the Highland Food Festival. He has been Captain of the Nairn Golf Club. Since 2014 he has been a voluntary board member of the Scottish Bakers, a non profit making trade and training company and is currently Chairman elect of the British Confectioners Association.

Mr Asher was Deputy Lord Lieutenant of Nairnshire from 2012 to 2017 and, since the start of 2017, Vice Lord-Lieutenant. He is married and has three sons.

A group of independent Competition and Markets Authority (CMA) panel members has examined all submissions received since its provisional findings before coming to its final view. This follows an in-depth examination of evidence from a large number of wholesalers, suppliers and retail chains as well as a survey of hundreds of retailers.

Tesco, as a retailer, and Booker, as a wholesaler, do not compete head-to-head in most of their activities. However, since Booker supplies shops – such as Premier, Londis and Budgens – that do compete with Tesco, the group considered the impact of this carefully.

Booker does not own the shops it supplies and these retailers are free to set their prices and decide which products to stock. So, although these shops compete with Tesco, Booker cannot directly determine how they compete.

Given Tesco’s influence generally in the retail sector, the CMA also examined whether the merged company could raise prices or reduce service quality at either the wholesale or retail levels. It found that existing strong competition in wholesale and retail made this unlikely.

During the course of its phase 2 investigation, the CMA surveyed hundreds of retailers which showed that most shops use more than one wholesaler and frequently switch. A quarter of symbol group retailers and a third of independent shops switched at least once a month.

In addition, almost half of symbol group retailers surveyed and more than a third of independent retailers said that if Booker were to raise prices after the merger with Tesco, they might stop buying from Booker altogether. And only around a fifth would continue buying the same volumes from Booker, alongside their other wholesalers.

The CMA also considered concerns that, after the merger, Booker would be able to use Tesco’s buying power to purchase groceries from suppliers at lower prices and that other wholesalers might not be able to compete. This could lead to Booker eventually raising its prices if the choice didn’t then exist to keep prices competitive. But the CMA concluded that the wholesale market would remain competitive in the longer term, noting that Booker’s share of the UK grocery wholesaling market was not sufficient to justify these longer-term concerns.

The CMA also noted that if Booker could get keener prices for its goods from suppliers, this might actually intensify competition in the wholesale market, leading to cheaper prices for the shoppers and caterers Booker supplies.

Simon Polito, Chair of the inquiry group, said:

We have carefully listened to feedback from retailers and wholesalers who operate in what are highly competitive UK retail and wholesale sectors. Retailers have told us that they shop around for the best prices and service from their wholesaler, and we are confident that this will continue after Tesco buys Booker.

This has been an important investigation for us. Millions of people use their local supermarket or convenience store to buy their groceries or essentials, so it is vital that they have enough choice to secure the best deal for them. Having examined the evidence in depth, we are satisfied this will remain the case following the merger.

The CMA opened its phase 1 investigation into the merger in May. At the end of June, the companies requested a ‘fast track’ referral to the next stage of the investigation.

All information relating to this merger inquiry can be found on the case page.

Notes for editors

1. Tesco operates more than 3,000 stores across the UK. Booker supplies services to over 5,000 ‘symbol’ stores as well as to thousands of independent retailers and caterers.
2. A ‘symbol’ store is an independent grocery retailer operating under a brand owned by a wholesaler. The retailer is usually required to purchase some of its wholesale supplies from the brand owner, in return for use of the brand and other supporting services. Booker’s symbol group brands are the Premier, Londis, Budgens and Family Shopper.
3. The CMA’s report also recognised that Booker operates a small number of shops. In the areas where Tesco and Booker shops compete with each other directly, the CMA has found that existing competition is likely to prevent prices from going up.
4. During the CMA’s inquiry Palmer & Harvey McLane Limited, and most of its subsidiaries, entered administration. The CMA has taken that into account in its final report.
5. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA updates, follow us on Twitter @CMAgovuk, Facebook, Flickr and LinkedIn.
6. All the CMA’s functions in phase 2 merger inquiries are performed by inquiry groups chosen from the CMA’s independent panel members. The appointed inquiry group is the decision-maker on phase 2 inquiries. The CMA’s panel members come from a variety of backgrounds, including economics, law, accountancy and/or business. The membership of an inquiry group usually reflects a mix of expertise and experience (including industry experience).
7. Media enquiries to the CMA should be directed to press@cma.gsi.gov.uk or 020 3738 6337.

• New Small Business Commissioner will support 208,000 small businesses in Wales to resolve payment disputes and tackle larger businesses unfair payment practices to drive culture change
• New guidance website to help small businesses with late payment issues
• Small businesses can now submit late payment complaints to the Commissioner

The Government has today (20 December 2017) launched the complaint handling service of the Small Business Commissioner to ensure fair payment practices for small businesses. This follows the appointment of Paul Uppal to the role of Small Business Commissioner.

Regulations made by Small Business Minister Margot James mean the Commissioner can now handle complaints from small businesses about unfair payment practices. The Commissioner’s website is also live, providing guidance to small businesses on payment issues including how to take action if a payment is overdue.

Margot James, Small Business Minister, said:

This Government’s Industrial Strategy is building a Britain in which small business can continue to thrive.

Over the last five years the amount owed to smaller businesses has more than halved from £30 billion to £14 billion. Today’s Small Business Commissioner service will empower small businesses in Wales to take action if they are paid late, potentially delivering a £2.5 billion annual boost to the economy.

Paul Uppal, Small Business Commissioner, said:

Having run my own small business for over twenty years I am well aware that integrity and trust are key to running and building a successful business. My mission is to help all small businesses nurture positive and lasting relationships with their customers that work in the best interests of both.

Today I am launching a new website so small businesses know their rights, as well as how to contact me if they need further action to be taken when the larger businesses they supply owe them money.

Mike Cherry, National Chairman of the Federation of Small Businesses, said:

The UK is gripped by a poor payments crisis, over 30 per cent of payments to small businesses are late and the average value of each payment is £6,142. This not only impacts on the small business and the owner, it is damaging the wider economy.

The Small Business Commissioner is crucial to turning the tide on this late payments culture. FSB will be encouraging small businesses affected to use the service, and we hope then to see clear actions taken to tackle the worst examples of supply chain bullying.

Success will be a UK economic culture where a business that does a job promptly, is paid promptly.

The Small Business Commissioner’s website guides small businesses on how to “check, chase, and choose” how to deal with unfair and late payments, that is:

• Check if the right information has been provided to the right people in order for an invoice to be paid
• Chase effectively when a payment is overdue
• Choose how to take further action, including the option of submitting a complaint to the Small Business Commissioner

This is one of a number of measures Government is taking to tackle a late payment culture. Regulations came into force in April 2017 requiring large businesses to publicly report the average time they take to pay their suppliers. This allows suppliers, including small businesses, to make informed decisions about who they do business with. Firms can check when large businesses pay their suppliers on GOV.UK. So far over 200 of the UK’s largest businesses have submitted payment reports.

The Small Business Commissioner was appointed on 2 October 2017 and is based in Birmingham.

Notes to editors:

• A third of payments to small businesses are late.
• 20% of small businesses have run in to cash flow problems due to late payments.
• If small businesses were paid on time, this could boost the economy by an estimated £2.5 billion annually.
• Small businesses who wish to make a complaint can visit www.smallbusinesscommissioner.gov.uk
• Enquiries about the Small Business Commissioner can be directed to enquiries@smallbusinesscommissioner.gov.uk
• Complaints can be submitted to complaints@smallbusinesscommissioner.gov.uk