The head of supermarket giant has added to concerns about the impact of the Middle East war on shoppers and the economy
The boss of Tesco pledged to do “whatever we can” to combat the threat of higher food bills in the wake of the Middle East war.
Chief executive Ken Murphy said the war was “creating further uncertainty for consumers and the economy more broadly.” It came as Tesco announced annual sales rose 5.4% to more than £73billion, with operating profits edging up to over £3.1billion.
Murphy added: “Over the last year, despite cost pressures from new regulation, we have increased our investments in keeping prices low, further improving quality and offering even better service.”
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It follows reports that Britain risks facing shortages of chicken, pork and other supermarket supplies this summer if the Iran war drags on.
Government officials are said to have drawn up emergency plans for a “reasonable worst case scenario” in the event of the closure of the key Strait of Hormuz leading to shortages of carbon dioxide.
CO2 is used to increase the shelf life of food such as salad , packaged meets and baked goods, and is also critical in the process of slaughtering nearly all pigs and more than two thirds of chickens. The gas is also used to make drinks fizzy.
According to the Times, plans – codenamed “Exercise Turnstone” – have been drawn up where farming and hospitality would likely be hit were the strait to not reopen and there was a lack of a peace deal longer term.
