The Express

Tesco Rejects Calls To Ban GM Foods

Tesco, Britain's biggest supermarket chain, yesterday insisted it had no plans to ban genetically modified food despite mounting pressure from consumers.

The company, which has nearly 16 per cent of the £90 billion UK grocery market, is the only major supermarket group so far to refuse to phase out GM ingredients from its own-label products.

Chief executive Terry Leahy said it had received "tens" of complaints from customers but the majority were satisfied that Tesco had clearly labelled products containing GM ingredients. In a dig at rivals he added: "It is a very complex issue and slightly misleading for anyone to say they can ban this food."

His comments came as Tesco announced a better-than-expected 8 per cent increse in full-year profits to £881 million and the creation of 20,000 jobs, half of them to be based in the UK.

New stores and Tescoe Direct, its Internet-based home shopping service are generating the additional jobs. Tesco plans to offer the Internet service from 100 stores within a year. Customers using the service will be charged a £5 delivery fee. The move follows Tesco's decision to become an Internet service provider, offering customers free access to the Net.

Tesco said it had signed up 200,000 Net customers and was adding 10,000 new subscribers every week.

Yesterday's results reinforced Tesco's position as Britain's biggest supermarket, with the chain's market share rising from 15.2 per cent in the year to March.

Like-for-like sales growth in the UK rose from 4.1 per cent over Christmas to 4.7 per cent in the following two months -- ahead of the sector average -- boosted by the group's recent price-cuts campaign.

The company said its six hypermarkets in central Europe had lost £16 million because of heavy start-up costs. It does not expect to break even until after 2000.

Its retail operation in Thailand made a loss of £2 million.

Shares in Tesco rose 9.75p to 169.25p.