UK: Warburtons pulls bread lines from central Europe

By Michelle Russell | 10 December 2012

The firm had started selling a number of its lines through a trial agreement with Tesco stores in the Czech Republic, Slovakia, Hungary and Poland

The firm had started selling a number of its lines through a trial agreement with Tesco stores in the Czech Republic, Slovakia, Hungary and Poland

UK baker Warburtons has pulled its bread lines from sale in Tesco stores in central Europe.

The firm had started selling loaves and muffins through Tesco stores in the Czech Republic, Slovakia, Hungary and Poland in June last year.

However, Warburtons said it faced high distribution costs and had been unable to find a partner to produce its products locally.

"Factors including high distribution costs and not being able to find suitable manufacturing partner means that the long-term viability of exporting to these markets is limited," the spokesperson said. "We will continue to look for new export opportunities which will allow us to export one of Britain's most popular bakery products."

In October last year, Warburtons said it had a "vision" its products would "one day" be available "in many countries".

Warburtons still has a presence in France through a deal with retailer Casino to sell bread into 270 of the group's Monoprix stores. In May, it also said it would begin selling bread in Spain, targeting British ex-pats through stores in Malaga, Alicante and the Balearic Islands.

Sectors: Bakery, Emerging markets

Companies: Warburtons, Tesco, Casino

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