Wm Morrison Supermarkets (LON:MRW) has vowed not to sell own-label ‘fake-farm’ food, the Guardian has reported. The pledge comes amid concerns by shoppers as well as backlash by the National Farmers’ Union (NFU).
Morrisons’ share price has been subdued in London in today’s session, having lost 0.52 percent to 248.20p as of 09:37 BST, slightly outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.69 percent lower at 7,446.41 points. The group’s shares have added just under 30 percent to their value over the past year, and are up by some seven percent in the year-to-date.
The Guardian reported yesterday that Morrisons had pledged to support real British farmers by not adopting brands using fake farm names. The announcement came after a 70 percent of adults responded in a company survey that they objected to the use of fictitious farm brands and only wanted genuine place or farm names on packaging and branding.
“Supermarket customers are sometimes presented with misleading images of farmers on their food” said Joe Mannion, head of British livestock at Morrisons, as quoted by the newspaper. “We believe that by meeting our real farmers, customers will see and value that we know where our food comes from.”
The move also follows backlash by the NFU with the union having previously slammed a move by FTSE 100 rival Tesco (LON:TSCO) to launch brands based on British-sounding but fictitious names.
The 15 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 225.00p on the shares, with a high estimate of 275.00p and a low estimate of 170.00p. As of August 4, the consensus forecast amongst 21 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.