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| Tesco in dispute with Unilever over price rises | Tesco in dispute with Unilever over price rises |
| (35 minutes later) | |
| Popular products including Marmite and Pot Noodles have been disappearing from Tesco shelves amid a dispute between the supermarket and supplier Unilever. | Popular products including Marmite and Pot Noodles have been disappearing from Tesco shelves amid a dispute between the supermarket and supplier Unilever. |
| The row developed when Unilever, which faces higher costs after the fall in value of the pound, attempted to pass them on in higher wholesale prices. | The row developed when Unilever, which faces higher costs after the fall in value of the pound, attempted to pass them on in higher wholesale prices. |
| Tesco said only: "We are currently experiencing availability issues on a number of Unilever products." | Tesco said only: "We are currently experiencing availability issues on a number of Unilever products." |
| "We hope to have this issue resolved soon," the company added. | "We hope to have this issue resolved soon," the company added. |
| However, it did not indicate when that might be. | However, it did not indicate when that might be. |
| Sterling has dropped by 16% against the euro since the UK's Brexit vote. | Sterling has dropped by 16% against the euro since the UK's Brexit vote. |
| Unilever is the UK's biggest food and grocery manufacturer with many famous brand names. | Unilever is the UK's biggest food and grocery manufacturer with many famous brand names. |
| Cost squeeze | |
| Among those currently absent from Tesco's website are Marmite spread, Surf washing powder, Comfort fabric conditioner, Hellmann's mayonnaise, Pot Noodles and Ben & Jerry's ice cream. | Among those currently absent from Tesco's website are Marmite spread, Surf washing powder, Comfort fabric conditioner, Hellmann's mayonnaise, Pot Noodles and Ben & Jerry's ice cream. |
| Unilever has declined to comment. | Unilever has declined to comment. |
| But the former boss of Sainsbury's, Justin King, has given an indication of the problem, saying that shoppers should expect higher prices because supermarkets will not be able to absorb the extra cost of imported goods. | |
| According to media reports of a conference speech by Mr King, he said: "Retailers' margins are already squeezed. So there is no room to absorb input price pressures and costs will need to be passed on. | According to media reports of a conference speech by Mr King, he said: "Retailers' margins are already squeezed. So there is no room to absorb input price pressures and costs will need to be passed on. |
| "But no one wants to be the first to break cover. No business wants to be the first to blame Brexit for a rise in prices. But once someone does, there will be a flood of companies, because they will all be suffering." | "But no one wants to be the first to break cover. No business wants to be the first to blame Brexit for a rise in prices. But once someone does, there will be a flood of companies, because they will all be suffering." |
| Leading retail analyst Richard Hyman told the BBC: "This shines a light on something that is going to be happening all the time. | |
| "The problem is that retailers can't just put up their prices and get away with it. | |
| "Oversupply of retailers means that for the past 24 months there has been food price deflation. What makes them think they can just push prices higher?" he added. |