Economic Audit: Tesco

Supply Chain & Sourcing Relationships

Tesco sources multiple agricultural product lines from Israeli exporters with documented operations in the Occupied Palestinian Territories (OPT). Who Profits does not maintain a standalone company profile for Tesco, but its Mehadrin, Achdut-Achva and Psagot Winery profiles each identify Tesco or Tesco’s online storefront as a retail outlet for their products ¹²³.

Mehadrin - Israel’s largest citrus/avocado/date exporter - states in its own documentation that its products “are marketed in Europe through Tesco, Fruttilal, Amt Ltd., Albert Heijn, COSTCO,” with roughly 15% of its fruit marketed to the UK ¹. Mehadrin operates settlement-linked facilities including a grape packing house in Beka’ot (Jordan Valley), crop operations in Messua, packaging in Tomer and Na’aran (Jordan Valley), produce storage in Netiv Hagdud, and, via its 50%-owned subsidiary Miriam Shoham, a mango packing house in Ramot settlement in the occupied Golan Heights ¹[^41]. Corporate Watch’s 2013 investigation directly named Tesco supplier Mehadrin (via Mehadrin Tnuport Export/MTEX) for mislabelling settlement-grown produce as “Produce of Israel” ⁴; Tesco issued a formal response on 3 April 2013, though the substantive content of that reply was not recoverable ⁵.

Hadiklaim (Israel Date Growers Cooperative) supplies dates marketed under supermarkets’ own labels including Tesco, M&S, Sainsbury’s, Asda, Morrisons and Waitrose; Hadiklaim dates labelled “Produce of Israel” were photographed on Tesco shelves in late 2019 despite the company’s packing operations being located in the Jordan Valley ⁶.

Carmel Agrexco, a former Israeli state-founded agri-exporter liquidated in 2011, was documented in 2007 supplying Medjoul dates grown in the Tomer settlement, packed under a “Made in Israel” label, and destined for Tesco stores; Tesco acknowledged the labelling as an “error” at the time ⁶.

Achdut-Achva, a tahini and halva manufacturer based in the Barkan Industrial Estate in the West Bank, sells its products (tahini, halva, bakery goods) via Tesco’s online store, alongside Amazon, Walmart and Sainsbury’s ².

Galilee (Export) and Miriam Shoham were named by the International Centre of Justice for Palestinians (ICJP) in October 2024 as settlement-goods exporters of mangoes and avocados to UK retailers, though no source specifically confirmed Tesco as Galilee’s direct buyer ⁷[^41].

Product categories documented as Israeli-sourced at Tesco across multiple years include Medjoul and Deglet Nour dates, Hass avocados, citrus (grapefruit, lemons), mangoes (Kent, King David), herbs (basil, coriander), peppers, Sharon fruit (persimmon), potatoes, radishes, samphire, grapes and stonefruit ⁶¹.

No public evidence identified that Tesco uses a dedicated wholly-owned import subsidiary for Israeli/OPT-origin goods; sourcing instead runs through direct supplier relationships (Mehadrin, Hadiklaim) and third-party wine importers. No public evidence identified of a specific documented “Tesco seasonal contract” governing counter-seasonal citrus or avocado supply, beyond Mehadrin’s general UK/EU export certification.

Product Origin, Labeling & Regulatory Compliance

Settlement-origin products sold under “Produce of Israel” labelling have been documented repeatedly: 2007-era Tomer-settlement dates labelled “Made in Israel” bound for Tesco ⁶, and late-2019 Hadiklaim dates labelled “Produce of Israel” despite Jordan Valley sourcing ⁶. DEFRA guidance cited in NGO reporting states that West Bank-grown produce labelled simply “Produce of Israel” would be “misleading consumers” ⁶.

A Tesco Groceries product listing for “Psagot Sinai Wine 75Cl” was located via search ⁸. Psagot Winery is described as the largest West Bank settlement winery, with vineyards in Psagot, Har Bracha, Elon Moreh and the Kida outpost, largely situated on privately owned Palestinian land ³⁹. A separate Tesco Groceries listing for “Barkan Classic Cabernet Sauvignon 750Ml” was also located ¹⁰.

Tesco’s labelling-compliance history spans several episodes: in 2007 Tesco characterised the Tomer-dates mislabelling as an “error” and pledged future West Bank-origin labelling ⁶; in 2013 Corporate Watch alleged continued mislabelling via Mehadrin/MTEX, to which Tesco replied on 3 April 2013 ⁴⁵; in 2014 Tesco announced cessation of West Bank-origin sales from September 2014, stating the only West Bank product then stocked was dates “packaged in the territories but grown in Israel,” withdrawn for “commercial reasons,” with a spokesperson denying the move was “politically motivated” or Gaza-conflict-related ¹¹¹²¹³; and by 2019/2020 NGO photographic evidence indicated the 2014 commitment had not eliminated settlement-linked Hadiklaim dates from shelves ⁶. Ethical Consumer’s dates guide, updated January 2026, identifies Tesco among retailers still selling Israeli-sourced dates ¹⁴.

Tesco’s stated current position, per 2024–2025 reporting around a UK employee dispute, is that it “does not source any products from Judea and Samaria” and “strictly follows all UK government labelling rules” ¹⁵. This is a corporate assertion rather than an independently verified shelf audit.

On the legal/regulatory-enforcement front, ICJP issued a formal legal notice in October 2024 to Tesco and seven other UK supermarket chains, demanding clarification on which settlement products are sold, what steps are being taken to end sales, and what due diligence prevents mislabelling or repackaging by third-party suppliers - citing Mehadrin, Miriam Shoham, Galilee, Hadiklaim and Achdut-Achva as source companies for dates, mangoes, avocados, tahini, halva and bakery goods ⁷. ICJP followed up in December 2024 calling on government to review supermarkets’ complicity in the settlement trade ahead of the Christmas retail period ¹⁶, and issued a further notice in June 2025 addressed specifically to Sainsbury’s ¹⁷. No public evidence identified of Tesco’s substantive written reply to the October 2024 notice. Separately, a prior piece of litigation against Tesco was dismissed, as documented in Simmons & Simmons’ legal commentary ¹⁸.

Investment, Capital & Financial Exposure

Tesco made an undisclosed strategic investment in Trigo Vision (Trigo Retail), a Tel Aviv-headquartered computer-vision “frictionless checkout” startup, in October 2019, following a collaboration begun in summer 2019, contributing to a $22M Series A round led by Red Dot Capital ¹⁹²⁰²¹. Trigo has since raised a further $100M in October 2022, led by Temasek and 83North, bringing total funding to $204M, with Tesco and Germany’s REWE named as strategic investors ²². Trigo’s roughly 200 employees are based mainly at its Tel Aviv development centre, with additional offices in the UK, Germany, Netherlands and US ²³²⁴. No public evidence identified of the exact monetary value of Tesco’s investment or its resulting equity stake in Trigo.

Trigo’s co-founders, Daniel and Michael Gabay, are both alumni of the IDF’s elite Talpiot programme; Daniel Gabay’s IDF R&D role ran from August 2010 to May 2017, following Talpiot cadetship from 2007 to 2010 ²⁵. No public evidence identified linking Tesco’s investment itself to any active IDF programme, contract, or defense end-use, beyond this documented founder background.

Tesco opened an autonomous, frictionless store using Trigo’s technology and announced plans for further such stores ²⁴. No public evidence identified that Tesco itself operates an R&D facility, innovation lab, or accelerator programme physically located in Israel; its only documented Israel-linked technology exposure is the Trigo investment, which sits within an investee company’s Tel Aviv facility rather than Tesco’s own infrastructure.

Tesco PLC is a UK-listed public company. No public evidence identified of a controlling parent company, private-equity sponsor, or institutional/index shareholder holding disclosed Israel-specific portfolio exposure tied to Tesco. Tesco’s retail banking arm, Tesco Personal Finance PLC (“Tesco Bank”), was sold to Barclays Bank UK PLC, with completion on 1 November 2024 for £0.6bn consideration following High Court Part VII approval on 17 October 2024, accompanied by a 10-year exclusive brand partnership ²⁶²⁷. This removes any prior or ongoing Tesco-branded banking-sector financial exposure to Israel from the current corporate structure. No public evidence identified either way as to whether Tesco Bank held Israel Bonds or Israeli sovereign debt prior to divestment.

Operational Presence & Market Activity

No public evidence identified of Tesco-operated offices, warehouses, or retail stores in Israel or the OPT; Tesco’s only Israel-linked physical or operational nexus is its investee relationship with Trigo, a Tel Aviv-based company ²³²⁴. No public evidence identified of Tesco workforce or Israeli tax/regulatory registration, consistent with the absence of a direct Israeli operating entity. No public evidence identified of Tesco characterising Israel as an export, growth, or strategic market in annual reports or investor materials.

Internally, a Tesco worker who refused to handle products marketed as Israeli was suspended and subsequently reinstated following a campaign; coverage described protests over the suspension and celebrated the reinstatement as a labour-organising victory ^28152930. This episode occurred against a wider backdrop of growing European boycott activity targeting Israeli goods at retail level, as documented in February 2026 reporting on boycott movements across Europe ³¹. A Change.org petition specifically urges Tesco to cease stocking Israeli goods and Israeli-linked investments ³². By contrast, peer UK retailer Co-op announced in 2025 that it would stop selling goods from Israel following a member vote in which 73% supported a boycott motion, illustrating a divergent sector position relative to Tesco’s continued stocking of Israeli-origin products ³³³⁴.

Corporate Structure & Foundational Ties

No public evidence identified of any Israeli founding, incorporation, dual-headquarters arrangement, or legacy Israeli corporate domicile associated with Tesco PLC. No public evidence identified of Israeli state ownership stakes in Tesco, Israeli government board appointees, Israeli government contracts held by Tesco, or any critical-infrastructure designation for Tesco within Israel. No public evidence identified of golden shares, founder shares, or charter provisions tying Tesco to Israeli state policy objectives.

Tesco’s only Israel-linked equity relationship identified is the minority strategic/venture investment in Trigo, an independent Israeli-headquartered company ^19202122. No public evidence identified that Tesco has acquired or holds a controlling operating stake in any Israeli company; the Trigo relationship is explicitly distinguished from “acquired subsidiary” status on the evidence found.

Profit Repatriation & Economic Contribution

No public evidence identified of Tesco disclosing Israel-specific revenue, consistent with the absence of Israeli retail operations; all Israel-linked commercial activity identified is upstream (procurement and investment) rather than market-facing sales within Israel. Tesco functions as a net purchaser of Israeli-origin and settlement-linked agricultural and consumer goods, representing an outward payment flow from the UK to Israeli exporters and suppliers such as Mehadrin, Hadiklaim, and Achdut-Achva, and to the Israeli-founded technology firm Trigo, rather than a recipient of Israel-sourced profit ^16219202122.

No public evidence identified of Tesco being characterised as a sector anchor, key employer, or infrastructure provider within the Israeli economy. Conversely, Mehadrin’s own disclosures describe UK retail - via Tesco and other chains - as accounting for roughly 15% of its fruit marketing, indicating that the purchasing relationship is more economically material to the Israeli supplier than to Tesco itself ¹.

End Notes