Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Tesco's boss knows which side his bread is buttered

Outlook

Jim Armitage
Friday 17 April 2015 08:05 BST
Comments
Tesco’s new boss Dave Lewis has decided to buy out Euphorium completely
Tesco’s new boss Dave Lewis has decided to buy out Euphorium completely ( Jeff J Mitchell/Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The much-reviled regime of Philip Clarke at Tesco wasn’t entirely bonkers. While his takeover of the Giraffe restaurant chain always seemed an unnecessary distraction from the struggling core grocery business, he did do other, cannier deals – notably, Tesco’s partnership with the posh Euphorium Bakery group.

The difference between the two transactions is plain. Giraffe was bought in what seemed a desperate bid to use up space in Tesco’s out-of-town and out-of-touch hypermarkets. There was scarce natural crossover with the stores themselves.

Euphorium, on the other hand, fitted perfectly in-store immediately, with its sour doughs and artisan breads complementing Tesco’s cheaper bakery goods.

It has proved particularly popular in the posher corners of the country, offering differentiation from Aldi and Lidl for wealthier shoppers.

Now, despite Tesco’s new boss, Dave Lewis, pulling the plug on many of the non-core businesses, he’s decided to buy out Euphorium completely.

While the deal is small potatoes for a business the size of Tesco, the City has rightly welcomed it as proof that Mr Lewis is taking a measured approach to fixing the business he inherited.

Meanwhile, the Euphorium founder Danny Bear, who set up the business in 1999 with a single bakery in the Labour-luvvie heartland of Islington, walks away with his pockets stuffed full of Tesco’s bread. Good luck to him.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in