Biodegradable plastics company Symphony Plastic Technologies is to end a three-year-old supply deal with Somerfield and Kwik Save. Pricing pressure from the supermarket chains undermined the feasibility of the arrangement to supply biodegradable carrier bags, a company statement indicated.
The contract was worth around £260,000 over the first seven months of the current financial year, said Symphony, which expects to end the deal by the end of October. The company said it is pursuing alternative sales opportunities, both in the UK and internationally.
Michael Laurier, Symphony CEO said: "Naturally we are disappointed to lose such a high profile customer after sharing an extremely good relationship over the last three years. However, in any competitive situation we have to balance the benefits of the contract against its commercial viability and our wider ambitions."