Tesco has decided to partner with longtime U.K. suppliers in its U.S. Fresh & Easy venture rather than to work with local companies. Fresh & Easy's private-label Big Kahuna Australian wine is imported by a U.S. subsidiary of an English wine company, and the retailer's chilled fresh poultry and meat is prepared by 2 Sisters Food Group, also a U.K.-based company. "They are really building a little campus there where they can control the distribution, which will allow them to do some things that their competitors can't do," said Paul Weitzel of retail consultant Willard Bishop.

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