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Europe September 11, 2009, 2:25PM EST

Supermarket Bails Out Prince Charles

(page 2 of 2)

When he founded the firm in 1990, the Prince hoped the sale of premium soups, jams, biscuits and ales would promote the virtues of organic food, support small-scale farmers and manufacturers and promote sustainable business. But it controversially laid off its sales staff two years later, passing the job of promoting its products to its manufacturers instead. It also opened a loss-making bakery division.

Yesterday its chief executive, Andrew Baker, blamed a 50 per cent price rise in organic ingredients and a dip in organic buying during the recession for its losses, which he declined to quantify. "It's absolutely not the case that this is a rescue by Waitrose. We have a strong business model that has gone through a difficult trading period," he said.

Michael Jary, the company's non-executive chairman, insisted: "There was no problem with the business model maintaining sales at the status quo, which was about £50m of retail sales, or continuing on a growth path which would have taken us to £60m or £70m.

"But what we identified is that if you really want to grow this brand as fast as the market allows and maximise the income for the charities, you need a degree of strength and support.

"Almost all entrepreneur-founded ethical brands reach that same conclusion: Green & Blacks and Cadbury's, Jordan's and ABF, Innocent [and Coca-Cola], almost all of them have said: 'We've had a very successful run, we've grown the brand to be a leader within its category, but we need to take it to the next level'."

Stars in their aisles: Supermarket celebrities

• Sainsbury's flew John Cleese over from the US to gesticulate in its aisles in the 1990s but the campaign was a flop. Now cheeky chappie chef Jamie Oliver gurns at housewives.

• For Tesco the Spice Girls, Paul Daniels, Des O'Connor and Cleese's old sparring partner Prunella Scales – in the guise of "Dorry Turnbull" – have told shoppers Every Little Helps.

• After a redtop controversy last month, ex-Atomic Kitten Kerry Katona was sacked as the face of Iceland, for which she promoted cut-price snacks.

• While strolling fields and farms, family-friendly Alan Hansen, Richard Hammond and Denise van Outen have extolled the virtues of Morrisons' (MRW.L) home-produced fresh produce.

• Asda shuns celebrity TV ads but signed footballer's wife Coleen Rooney to promote its clothing range, George, and ex-Hear'Say singer Suzanne Shaw to model its lingerie.

Provided by The Independent—from London, for Independent minds

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