Morrisons (MRW.L) on Thursday grew to become the most recent British grocery store group to be focused by activist shareholders over the quantity of unhealthy meals it sells.
Accountable funding group ShareAction mentioned it, together with seven institutional traders managing $1.1 trillion between them, had written to Morrisons Chairman Andrew Higginson forward of the grocery store’s annual shareholders’ assembly calling on it to spice up gross sales of more healthy food and drinks merchandise.
Final month market chief Tesco (TSCO.L) agreed to extend wholesome meals choices at operations in Europe and Britain to appease traders co-ordinated by ShareAction who had filed a landmark shareholder decision to pressure the difficulty. read more
The Morrisons traders signing the letter included NEST, Man’s & St Thomas’ Basis, JO Hambro Capital Administration and Castlefield Funding Companions.
They famous that Morrisons has a goal to extend the variety of more healthy own-brand merchandise to 65% of all own-brand merchandise by 2025 however mentioned this didn’t go far sufficient.
“Whereas Morrisons has made important progress in decreasing the calorie, salt and sugar content material of its own-brand merchandise, questions stay concerning the firm’s technique and total publicity to rising regulatory stress and client tendencies supporting more healthy diets,” mentioned Ignacio Vazquez, senior supervisor at ShareAction, which co-ordinated the letter.
The traders need Morrisons to reveal the share of whole meals and non-alcoholic drink annual gross sales by quantity made up of more healthy merchandise, and to publish a long-term goal to considerably improve that share.
Additionally they need Morrisons to replace on its progress in direction of targets in its annual studies from 2022 onwards.
They famous that of Britain’s listed grocery store teams – Tesco, No. 2 Sainsbury’s (SBRY.L) and No. 4 Morrisons – Morrisons is the one one but to set sales-based well being targets.
“We’re dedicated to serving to our clients make more healthy selections and we’re supportive of measuring efficiency and setting significant targets,” mentioned a Morrisons spokesperson.
“We already publish the proportion of our personal model merchandise that are classed as wholesome and have a dedication to extend this.”
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