Blog: Petah MarianWarren Buffett describes Tesco's US venture as "foolhardy"

Petah Marian | 3 May 2011

Tesco has attracted criticism from US billionaire Warren Buffett, the man dubbed the Sage of Ohama for his investment record.

Speaking at the annual shareholders conference for his investment vehicle Berkshire Hathaway, Buffett urged Tesco to take a hard look at its troubled US venture, Fresh & Easy.

The Times reported today (3 May) that the investor believes Tesco was "foolhardy" in its attempts to enter the market.

And Buffett was not alone in his remarks. Additionally, according to The Daily Telegraph, Berkshire Hathaway vice chairman Charlie Munger said: "'I'm not critical, I just think it's difficult to be a new boy. Tesco is God Almighty in England. But you come into Southern California and you have Trader Joe's and Costco - that's tough competition."

He added: "We're huge admirers of Tesco but I do think what they're trying to do is hard. I could have told them if they'd asked me but they didn't."

Speaking at Tesco's annual results presentation a fortnight ago, new CEO Philip Clarke emphasised that losses in the division must come down this year after they widened during 2010. It attributed the increased losses to the acquisition of its two fresh food suppliers - 2 Sisters and Wild Rocket Foods.

 


BLOG

UK consumers to cut back on fruit and veg - and point to Brexit, study says

Whatever your view on Brexit, a piece of research issued today (18 July) in the UK on fruit and veg consumption will likely unite more of you than last year's divisive vote....

BLOG

Cyber attack - another wake-up call for business

A month after an international cyber attack hit entities including the UK's National Health Service and Spanish telecoms giant Telefonica, another has caused havoc around the world, affecting business...

BLOG

A bad fortnight for self-regulation

Recent events in Canada, Brussels and the UK suggest the task of defending self-regulation as the best way to prevent the commercial activities by food companies from exacerbating childhood obesity is...

just-food homepage



Forgot your password?