Tesco raises price of single purchase milk to £1.55

Published 26 November 10

While Tesco has increased the price for one 4-pint polybottle of own label milk to £1.55, the 2 for £2.00 offer has been retained.  It is likely that this may be to partially regain some of the margin on milk sales that has been lost from the price war.

The impact of the price war on retailer gross margins has been to decrease them to 13.3ppl, in comparison to the 22.5ppl gross margin reported in the Dairy Supply Chain Margins Report 2009/10.

For more on this story and other news about dairy markets view our Dairy Market Update.