Tesco and Unilever dispute means shops running low on popular brands


Updated on 13 October 2016 | 19 Comments

Marmite and Pot Noodle were among the many products affected by a price dispute between Tesco and Unilever.

Tesco had stopped stocking dozens of Britain’s most popular brands following a price row with its biggest supplier Unilever.

Marmite, Pot Noodle and Hellmann’s mayonnaise are among the products currently unavailable for online purchase, while many stores are running low on stock.

It comes after Unilever reportedly demanded a 10% price rise from Tesco as a result of a weaker pound, which has plummeted against the euro and the dollar since June’s Brexit vote.

A weaker pound makes it more expensive to import goods.

However, the dispute has now been resolved.

"Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved," the company said.

"We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available. For all those that missed us, thanks for all the love."

Get paid to shop: compare cashback credit cards

Screengrab of the Tesco website (Image: Tesco)

Unilever heavily criticised

Tesco reportedly refused to meet Unilever’s demands, although it remains unclear which company took the decision to stop trading.

However, it is Unilever that has come in for widespread criticism.

The hashtag #Marmitegate was trending on Twitter, with many accusing the Anglo-Dutch manufacturer of trying to exploit the Brexit vote for more profit.

Others pointed out that Marmite is actually produced in the UK, although obviously Unilever supplies Tesco with many other brands so that's just part of the argument.

Earn cashback when you shop with these credit cards

 

 

Does Unilever have a point?

While Unilever isn’t saying much, it’s worth noting that chief executive Paul Polman warned earlier this year that a Brexit vote would “negatively impact” the company.

Speaking in the build-up to June’s referendum, Polman said: “We therefore hope that in the interests of Unilever, the UK, Europe, and indeed the wider global economy, the UK will choose to remain and thereby continue to play a central role in Unilever's long-term growth and prosperity.”

As mentioned earlier, the main point of contention is the weakened pound. It’s down more than 15% against both the euro and dollar.

The dispute has been given an added dimension by the fact that current Tesco boss Dave Lewis spent much of his career at Unilever.

More shopping news on loveMONEY:

When own-brand beats branded goods

Aldi: 10 shopping hacks to save more money

Tesco hikes delivery costs

Comments


Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.