Tesco expands restrictions on ultra-processed food ingredients   

Tesco has expanded its list of banned and restricted additives for private label products from 65 to 114. The move is in response to increased concern amongst shoppers around ultra-processed food. Aspartame, monosodium glutamate and artificial colours are now banned, while the use of other additives such as mono and diglycerides of fatty acids will be restricted. In addition to the new restrictions, Tesco has added a filter to its online platform enabling shoppers to search for products that are additive free. 

Senior Insight Analyst, Alex Rowberry’s view:

Tesco’s decision builds on growing industry movement around foods classed as unhealthy, whether that be ultra-processed or classed as high in fat, sugar or salt. Beyond reformulation, the introduction of an additive-free online filter demonstrates how retailers can use digital tools to help shoppers navigate increasingly complex health and wellness choices. The changes reflect growing shopper concerns on the content of food and drink products, and fit into Tesco’s strategic ambition to ‘Meeting more everyday customer needs’. 

M&S and Sainsbury’s cut prices on organic ranges  

Just over a week ago, M&S announced it is investing £4m into lowering prices on 50 products from its Organic range to improve the accessibility of organic food for shoppers, and just last week, Sainsbury’s similarly announced half-price Nectar offers on selected products from its So Organic range. According to Worldpanel, the organic market is growing 4.4% YoY (as of May 2026). These investments look to capitalise on a category with continued and growing interest, while also improving shoppers’ choice of products even when restricted in budget.

Analyst, Seth Russell‘s view:

by investing in the price reduction of organic food, M&S and Sainsbury’s are jumping the hurdle seen by many shoppers as a barrier to entry for the category, its premium price. While many shoppers revere the benefits and quality of organic products, and the category having been prevalent for quite some time, it is simply seen as not affordable to those with restrictive budgets. By removing the barrier to entry, these retailers are making headwind on three fronts, one significant for the businesses themselves, one significant for the market, and one significant for the shoppers. Improving accessibility for organic will improve trust, loyalty and quality perceptions for M&S and Sainsbury’s, likely driving volumes, increasing loyalty, and potentially drawing new shoppers in while also improving sustainable practices in the businesses. The impact on the market is that these two retailers will jump ahead in sales of organic products, potentially being seen as the best to shop at for the category, meaning others will either follow suit or risk being left behind. Finally, the accessibility improvement for the shoppers will contribute to a healthier average diet and expand the shoppers choice.  

Dhamecha’s depot number 14 now open 

Major quasi-national cash & carry wholesaler, Dhamecha has opened its fourteenth depot in England this week.  Located in the St Pauls district north-west of Bristol city centre, offering ready access from junction 3 of the M32, the new depot now provides access to new groups of independent retailer customers across the South-West and south midlands for the first time.   As the largest member of the UK’s largest buying group Unitas, the new depot will further boost Dhamecha’s existing customer base of 18,000 retailers. 

Insight Partner, Patrick Mitchell-Fox’s view:

Dhamecha has significantly expanded its reach across the English market in recent years.  Bristol is the fifth new depot opened in the last five years with depots also having been added in Nottingham and West Bromwich (2022) and Liverpool (2024).  These openings have driven significant sales growth since 2020, with sales reported to Companies House for the year to March 2025 at £1,347m representing a five-year compound annual growth rate of 9.7% and overhauling the Co-op Wholesale business (formerly Nisa) for scale as a route to the UK independent retail market.  However, Dhamecha’s growth slowed markedly in the last year of this period, with 2025 essentially flat versus 2024.  With a half-year contribution to 2026/27 from the new Bristol depot we may expect to see a return to growth in both the current year and 2027/28. 

Poundstretcher owner joins race for Poundland 

As a new owner for the variety discount chain is expected before Christmas, the list of suitors is growing. Alongside a potential management buyout, Fortress Investment Group (which purchased Poundstretcher in 2024) has shown interest as well. It is not thought that a merger of the two is on the cards at the moment. 

Michela Pearson, Senior Insight Analyst’s view:

Lots of changes going on in the UK’s variety discount channel. Fortress Investment Group’s interest is something to note; Poundstretcher itself is not in the best financial position, escaping going into administration in June 2026. Poundland’s latest annual results show a decline in sales of circa 12%, predominantly driven by the closure of around 150 unprofitable stores. Initial bids are expected in early October, and this is one of those “wait and see” moments. 

Essar acquires SGN forecourt business enroute to 800 sites 

Oil company, Essar the operator of the Stanlow refinery in Cheshire has bought the multi-site fuel dealership business SGN Retail, adding its 118 forecourt sites to Essar’s network of 19 company-owned fuel locations under its EET Retail division.  Alongside these directly operated sites Essar also supplies branded fuel to a further 100 independently owned sites.  The acquisition is likely to be the first of several deals targeted by Essar as the business pursues its stated ambition to build a forecourt supply network of 800 sites by 2031, with expansion likely to be driven by dealer-recruitment as well as direct acquisition. 

Insight Partner, Patrick Mitchell-Fox’s view:

founded in 2016 and growing to sales of £452m in 2025/26, SGN is one of the larger tier-two UK dealership businesses, albeit notably smaller than MFG, the sector giant with some 1,200 sites.  Beneath SGN in scale there are some 20 other multi-site dealership businesses with more than 10 locations, offering further acquisition opportunities to boost the Essar network.  While the number of UK fuel forecourts is currently broadly stable the long-term switch to electric charging will progressively put pressure on fuel sales in the future, likely driving a consolidation of ownership as sales per site decline.  Securing its own retail network for the future will help ensure Essar access to a significant share of the motor fuel market going forward. 

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