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Unilever and Tesco resolve Brexit price rise row – Business live Unilever and Tesco resolve Brexit price rise row – Business live
(35 minutes later)
6.24pm BST
18:24
There were signs today that Unilever were losing the PR battle with Tesco -- even within the shadow of the Marmite factory.
Reuters caught up with Jeaninne Richards, 69, a retired dressmaker and Brexit support, in the aisles of the Basildon Tesco, and was told:
“Unilever is being so greedy. They are using Brexit as an excuse ... If they take their products off the shelves, people are going to buy different products and then stick with it, so they are going to lose a lot of customers because of it.”
6.22pm BST
18:22
City AM’s Jake Cordell suspects Unilever have caved in....
Tesco on #Marmite: "We’re pleased its been resolved to our satisfaction”. Big cave in from Unilever?
6.18pm BST
18:18
Tesco: We're pleased the situation is resolved
A spokesperson for Tesco has told the Guardian that:
“We always put our customers first and we are pleased this has been resolved to our satisfaction”
They won’t tell us how the situation has been resolved with Unilever.
Our retail expert Sarah Butler suspects that the two sides have cut a deal.....
Tesco says its dispute with Unilever has "been resolved to our satisfaction" - appears to suggest some compromise deal has been reached..
Updated
at 6.20pm BST
6.15pm BST
18:15
Some snap reaction to the peace deal between Tesco and Unilever:
So #Tesco and #Unilever have made up. But where did they settle on price. Unilever wanted 10% price hike. What did they get!!!???
Oh thank God, the Great Marmite Disaster of 2016 'has been resolved' 🙌🏼
This tesco / unilever deal is great news for customers. But less good for producers of gags on news programmes
#Marmite #Brexit #Marmageddon #MattCartoon pic.twitter.com/ZXdJJxJjkG
6.10pm BST
18:10
The Great Marmite price war will go down as one of the shortest battles in UK business history.
It’s just 24 hours since the news broke that Tesco had pulled Unilever products from its website, after refusing to accept a 10% price hike to cover the slump in the pound.
Since then, the issue has been on the front page of websites and newspapers, and trending on social media with taglines like #MarmiteGate and #Marmageddon.
British people panic buying #Marmite perfectly sums up the hysterical insanity of 2016. #Marmitegate #Brexit pic.twitter.com/Yt0DS4TkLY
The dispute didn’t impress investors in either company -- Tesco’s shares slid by 3%, while Unilever saw 3.4% lopped off its value today. Clearly both sides risked losing out unless they came to a quick resolution.
5.54pm BST5.54pm BST
17:5417:54
Unilever: We've resolved the Tesco disputeUnilever: We've resolved the Tesco dispute
NEWSFLASH: The Brexit price wars are over.NEWSFLASH: The Brexit price wars are over.
Unilever just issued a statement saying that the dispute with Tesco has been “successfully” resolved.Unilever just issued a statement saying that the dispute with Tesco has been “successfully” resolved.
The Anglo-Dutch group says:The Anglo-Dutch group says:
Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved. We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available.Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved. 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.For all those that missed us, thanks for all the love.
MARMITE-GATE IS OVERUnilever pleased to confirm the supply situation with Tesco in the UK and Ireland has now been successfully resolved.MARMITE-GATE IS OVERUnilever pleased to confirm the supply situation with Tesco in the UK and Ireland has now been successfully resolved.
However, we don’t (yet) know whether Unilever has abandoned its attempt to hike prices, or whether Tesco has agreed to the price increases, or whether the two sides have met in the middle.However, we don’t (yet) know whether Unilever has abandoned its attempt to hike prices, or whether Tesco has agreed to the price increases, or whether the two sides have met in the middle.
5.34pm BST5.34pm BST
17:3417:34
Donald Tusk’s warning that Britain can’t have a soft Brexit could worry UK firms.Donald Tusk’s warning that Britain can’t have a soft Brexit could worry UK firms.
Trade insurance group Euler Hermes has warned that more companies would be driven under by a hard Brexit than a more conciliatory divorce.Trade insurance group Euler Hermes has warned that more companies would be driven under by a hard Brexit than a more conciliatory divorce.
But either way, the prospects aren’t great.But either way, the prospects aren’t great.
The FT has the details:The FT has the details:
A hard Brexit — a complete break with no access to the single market — would increase the risk of more bankruptcies, it says.A hard Brexit — a complete break with no access to the single market — would increase the risk of more bankruptcies, it says.
Under a soft Brexit it predicts that 25,170 businesses will fail in 2019. Under a hard Brexit that rises to 26,570.Under a soft Brexit it predicts that 25,170 businesses will fail in 2019. Under a hard Brexit that rises to 26,570.
New forecasts show that a hard Brexit would put 1,400 more UK companies into insolvency than a soft Brexit https://t.co/MLxHghjUjHNew forecasts show that a hard Brexit would put 1,400 more UK companies into insolvency than a soft Brexit https://t.co/MLxHghjUjH
5.16pm BST5.16pm BST
17:1617:16
Tusk: It's Hard Brexit or no BrexitTusk: It's Hard Brexit or no Brexit
NEWSFLASH: Donald Tusk, president of the European Council, is dismissing the idea that Britain could secure a so-called soft Brexit.NEWSFLASH: Donald Tusk, president of the European Council, is dismissing the idea that Britain could secure a so-called soft Brexit.
Speaking in Brussels, Tusk argues that Britain cannot expect to retain many of the benefits of EU membership while also leaving the bloc.Speaking in Brussels, Tusk argues that Britain cannot expect to retain many of the benefits of EU membership while also leaving the bloc.
Instead, he hinted that the prospect of a hard Brexit might force the UK to rethink leaving at all.Instead, he hinted that the prospect of a hard Brexit might force the UK to rethink leaving at all.
Tusk says:Tusk says:
“It is useless to speculate about ‘soft Brexit.“It is useless to speculate about ‘soft Brexit.
These would be purely theoretical speculations. In my opinion, the only real alternative to a ‘hard Brexit’ is ‘no Brexit’. Even if today hardly anyone believes in such a possibility.”These would be purely theoretical speculations. In my opinion, the only real alternative to a ‘hard Brexit’ is ‘no Brexit’. Even if today hardly anyone believes in such a possibility.”
Some UK ministers has argued that terms like ‘hard Brexit’ have little meaning, and that they could carve out a good deal that gave Britain access to the single market while also restricting migration.Some UK ministers has argued that terms like ‘hard Brexit’ have little meaning, and that they could carve out a good deal that gave Britain access to the single market while also restricting migration.
The only real alternative to a "hard Brexit" is "no Brexit". Even if today hardly anyone believes in such a possibility. pic.twitter.com/iFRfHUIO4wThe only real alternative to a "hard Brexit" is "no Brexit". Even if today hardly anyone believes in such a possibility. pic.twitter.com/iFRfHUIO4w
The essence of Brexit as defined in the UK referendum campaign means radically loosening relations with the EU, a de facto "hard Brexit"The essence of Brexit as defined in the UK referendum campaign means radically loosening relations with the EU, a de facto "hard Brexit"
Tusk also seemed to rubbish the idea (popular with foreign secretary Boris Johnson) that Britain could have its Brexit cake and eat it.Tusk also seemed to rubbish the idea (popular with foreign secretary Boris Johnson) that Britain could have its Brexit cake and eat it.
#Tusk:"#Brexit will be a loss for all of us. There will be no cake on the table, only salt and vinegar" #EPC20#Tusk:"#Brexit will be a loss for all of us. There will be no cake on the table, only salt and vinegar" #EPC20
Hopefully there’ll be Marmite on the table too....Hopefully there’ll be Marmite on the table too....
5.06pm BST5.06pm BST
17:0617:06
Shares in Tesco and Unilever have both fallen today, as investors anticipated the Marmite price wars turning uglier.Shares in Tesco and Unilever have both fallen today, as investors anticipated the Marmite price wars turning uglier.
Tesco’s shares fell 3% to 196p, while Unilever shed 3.4% to £36.51.Tesco’s shares fell 3% to 196p, while Unilever shed 3.4% to £36.51.
5.00pm BST5.00pm BST
17:0017:00
European stock markets suffer a bad dayEuropean stock markets suffer a bad day
It’s been a ropey day in the financial markets, as investors have fretted about the global economy.It’s been a ropey day in the financial markets, as investors have fretted about the global economy.
All the main European stock markets ended in the red, with the FTSE 100 dropping 46 points to 6977. Mining stocks were the big losers.All the main European stock markets ended in the red, with the FTSE 100 dropping 46 points to 6977. Mining stocks were the big losers.
The City was depressed by the overnight news that Chinese exports shrank by 10% year-on-year in September.The City was depressed by the overnight news that Chinese exports shrank by 10% year-on-year in September.
Shares are also falling on Wall Street, where traders are also wondering whether the Federal Reserve should really raise interest rates soon.Shares are also falling on Wall Street, where traders are also wondering whether the Federal Reserve should really raise interest rates soon.
Chris Beauchamp, Chief Market Analyst at IG, says:Chris Beauchamp, Chief Market Analyst at IG, says:
Wall Street has joined in the general flight from risk this afternoon, with the overnight Chinese export data still the chief culprit (although in fairness Bob Dylan being awarded a Nobel Prize would probably make anyone lose their faith in the future).Wall Street has joined in the general flight from risk this afternoon, with the overnight Chinese export data still the chief culprit (although in fairness Bob Dylan being awarded a Nobel Prize would probably make anyone lose their faith in the future).
4.43pm BST4.43pm BST
16:4316:43
There not much support for Unilever in the English town where Marmite is produced.There not much support for Unilever in the English town where Marmite is produced.
Nazia Parveen, our North of England correspondent, has paid a flying visit to Burton upon Trent. And she found that many people believe Unilever is pushing its luck by trying to hike prices by 10%.Nazia Parveen, our North of England correspondent, has paid a flying visit to Burton upon Trent. And she found that many people believe Unilever is pushing its luck by trying to hike prices by 10%.
One resident, 70-year old Dennis, is even planning to boycott Unilever (echoing Tory MP David Davies earlier today).One resident, 70-year old Dennis, is even planning to boycott Unilever (echoing Tory MP David Davies earlier today).
“Everything about Marmite is local - the workers, the ingredients - so ultimately I do not understand their argument and it is just downright profiteering.“Everything about Marmite is local - the workers, the ingredients - so ultimately I do not understand their argument and it is just downright profiteering.
We do like our Marmite as a family, especially our daughter, but we’re now going to boycott their products as we’ve had enough of Unilever holding local businesses and their own workers to ransom.”We do like our Marmite as a family, especially our daughter, but we’re now going to boycott their products as we’ve had enough of Unilever holding local businesses and their own workers to ransom.”
Here’s the full story:Here’s the full story:
UpdatedUpdated
at 4.48pm BSTat 4.48pm BST
4.24pm BST
16:24
This photo shows some of the scores of produces which Unilever supplies to UK retailers.
Many of them (unlike Marmite) will be produced abroad or rely on imported raw materials, thus vulnerable to the weaker pound.
4.15pm BST
16:15
Sky News’s Faisal Islam reckons Marmite lovers shouldn’t panic:
Plentiful supplies in this West London Tesco Express... don't want to encourage hoarding .... pic.twitter.com/HgPpqFsNOP
4.06pm BST
16:06
3.50pm BST
15:50
Expect New Year price hikes
Steve Dresser, retail analyst at Grocery Insight, expects retailers to hike prices in January - once the Christmas season is behind them.
He says:
“No one wants to put prices up ahead of Christmas. Others may just wait until January.”
“It’s only going to get more painful.”
Dresser also reckons Tesco is winning the PR battle so far, rather than being accused of bullying suppliers.
Is remarkable to consider that Tesco have come out well here; fighting price rises - in 2011 with Premier, was more about big bad Tesco.
PR / rebranding efforts are working well it appears.... Fact is no one wants price hikes pre Christmas. But they are coming.....
3.39pm BST
15:39
Media monitoring group Newton Insight report that the Tesco-Unilever spat has created particular interest in London, Scotland and Manchester (three places that voted to stay in the EU...).
And more men than women are opining....
How are the UK's customers responding on social media to the #Unilever and #Marmite price hike? NEWTON Insight looks at the #data. pic.twitter.com/HYoeg9J3PR
Updated
at 3.49pm BST
3.20pm BST
15:20
This is the defence for Unilever trying to hike the cost of Marmite, even through it’s made in Britain rather than imported.
Why hard 2 fathom? #Unilever report earnings in € so must hike GBP prices to counter GBP weakness. Doesnt matter if Marmite is made in UK.
2.33pm BST
14:33
Clive Lewis MP, Labour’s Shadow Business Secretary, is also concerned that UK shoppers are going to be hit in the pocket:
“Once again the public are paying the price for Tory failure to make any contingency plans for Brexit.
This is unlikely to stop at a Marmite shortage – more and more retailers are going to be squeezed by higher import prices in the coming months, as hedging contracts end and the cheaper pound starts to squeeze margins.”
2.19pm BST
14:19
Politics professor Philip Cowley has trawled through some recent polling data, and found that Liberal Democrat voters will be particularly hurt by the Tesco-Unilever standoff.
It's Lib Dems who are hurting most. #Marmite pic.twitter.com/lcD4p1hVwD
But a jump in poultry prices could cause Theresa May’s party some grief:
This'll get real if chicken is affected. pic.twitter.com/6QcT0UxhTH
Updated
at 2.19pm BST
1.59pm BST
13:59
Labour MP Stephen Kinnock says the Marmite price wars show that Brexiteers’ optimism about leaving the EU was ill-founded.
“When the plunging pound stops you from getting PG Tips and Marmite in the supermarket, you’re truly starting to feel the first tremors of Brexit.
“David Davis’s claims that there were no downsides to Brexit are colliding with economic reality. The best thing the Government can do for economic confidence and the pound is to commit now to starting the upcoming negotiations on the basis of securing full and unrestricted access to the single market.”
One clarification: Tesco has insisted that Unilever products are still available in stores today, but not from its website.
1.55pm BST
13:55
The Press Association has been out and about, snapping Unilever products on Tesco shelves: