In the four-weeks to September 15, which covered the period in which banana prices had dropped by 20 per cent on average across the network of multiple retailers in the UK, total sales of loose bananas rose by just 0.1 per cent in volume, according to AGB data. Revenue across the sector in the same period was down by 7.8 per cent.

These figures back up the views expressed in the Journal by major importers and the Banana Group that bananas are not price-sensitive and that the current price-cutting exercise, which sees the three leading multiples united below the 90p a kilo mark and has led to almost all retailers taking a significant chunk out of their banana price tickets, is futile.

Total banana sales in the same period have actually risen by 4.9 per cent in volume and fallen by 1.3 per cent in value, as prepacked product continues to forge ahead. Sales have continued to increase through the price war on loose bananas, which adds more fuel to the argument against price-focused promotion.

One city analyst has estimated that if prices were maintained at this level for a year, the industry would lose well in excess of £100 million on a line which consistently pulls in the profits. The same AGB data shows that Tesco has increased sales by 8.2 per cent and Sainsbury's by 15.5 per cent in the period, but Asda has only registered a 1.9 per cent rise. Against a 20 per cent decrease in prices, simple arithmetic shows that this does not add up to economic sense.

Promotions can of course be designed to move volume, but this one is nothing of the sort. It appears to be a concerted 'keeping up with the Jones's' effort, with only Safeway refusing to go with the flow. Its sales have dropped by 19 per cent in the same four weeks, which gives the first hint of a counter-argument, but no one retailer has made significant ground, or money.

The retailers, therefore, are losing money, and it stands to reason that their suppliers are also losing money. The consumer may be the one section of the chain that gains from this type of activity, but judging by their purchasing habits, the vast majority neither realise what's on offer or care.

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