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Unilever and Tesco resolve Brexit price rise row – as it happened Unilever and Tesco resolve Brexit price rise row – as it happened
(35 minutes later)
7.06pm BST7.06pm BST
19:0619:06
Closing postClosing post
With peace broken out in the Great Brexit price war (for the moment), it’s time to wrap up for the day.With peace broken out in the Great Brexit price war (for the moment), it’s time to wrap up for the day.
Here’s our latest news story on the short-lived saga that gripped the country, and brought home the consequences of the slump in the pound since June: Although ice cream and yeast spreads are trivial compared to, say Aleppo, today’s drama has brought home the consequences of the slump in the pound since June.
Here’s our latest news story:
Tesco and Unilever settle Marmite disputeTesco and Unilever settle Marmite dispute
Unilever has resolved its dispute with Tesco and says well-known brands including Marmite and Ben & Jerry’s will be back on the shelves.Unilever has resolved its dispute with Tesco and says well-known brands including Marmite and Ben & Jerry’s will be back on the shelves.
In a statement on Thursday afternoon, the food and household goods supplier said: “Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved.In a statement on Thursday afternoon, the food and household goods supplier said: “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.”“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.”
It emerged on Wednesday that Tesco was running low on a range of household brands from Marmite to Comfort fabric conditioner after a row with its major supplier.It emerged on Wednesday that Tesco was running low on a range of household brands from Marmite to Comfort fabric conditioner after a row with its major supplier.
Unilever halted deliveries to Tesco after the supermarket refused to stump up across-the-board price rises of about 10% for its brands.Unilever halted deliveries to Tesco after the supermarket refused to stump up across-the-board price rises of about 10% for its brands.
A spokesperson for Tesco said: “We always put our customers first and we are pleased this has been resolved to our satisfaction.”A spokesperson for Tesco said: “We always put our customers first and we are pleased this has been resolved to our satisfaction.”
The statement appears to suggest the two sides reached a compromise, although neither Tesco nor Unilever would confirm any details of their talks.The statement appears to suggest the two sides reached a compromise, although neither Tesco nor Unilever would confirm any details of their talks.
The quick resolution of the row is good news for Tesco’s boss, Dave Lewis, who previously held a senior role at Unilever. Analysts said the public spat had worked out well for the supermarket, as tabloid newspapers widely portrayed Tesco as a people’s champion on low prices.The quick resolution of the row is good news for Tesco’s boss, Dave Lewis, who previously held a senior role at Unilever. Analysts said the public spat had worked out well for the supermarket, as tabloid newspapers widely portrayed Tesco as a people’s champion on low prices.
“When was the last time you saw articles about Tesco as the shoppers’ champion,” said Dave McCarthy, a food retail analyst at HSBC....“When was the last time you saw articles about Tesco as the shoppers’ champion,” said Dave McCarthy, a food retail analyst at HSBC....
More here:More here:
Thanks for reading and commenting. Goodnight! GWThanks for reading and commenting. Goodnight! GW
Updated
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7.01pm BST7.01pm BST
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Associated Press also found limited sympathy for Unilever, as it struggles to cope with the consequences of Brexit.Associated Press also found limited sympathy for Unilever, as it struggles to cope with the consequences of Brexit.
Here’s some of their latest report:Here’s some of their latest report:
Philip Walker spreads Marmite on his daily crumpet and stockpiles jars of the yeast spread. He’s a fan, and he’s upset at plans to raise the price of this icon of the British breakfast table.Philip Walker spreads Marmite on his daily crumpet and stockpiles jars of the yeast spread. He’s a fan, and he’s upset at plans to raise the price of this icon of the British breakfast table.
Love it or hate it, Marmite has become the most visible sign yet of Britain’s decision to leave the European Union after consumer giant Unilever sought to raise wholesale prices for its products by a reported 10% following a sharp drop in the pound.Love it or hate it, Marmite has become the most visible sign yet of Britain’s decision to leave the European Union after consumer giant Unilever sought to raise wholesale prices for its products by a reported 10% following a sharp drop in the pound.
Tesco, the U.K.’s biggest supermarket chain, has rejected the increase and removed many Unilever products from its website. #Marmitegate was not far behind.Tesco, the U.K.’s biggest supermarket chain, has rejected the increase and removed many Unilever products from its website. #Marmitegate was not far behind.
“I am more angry at Unilever than I am at Tesco,” said Walker, a 43-year-old regional manager for St. John Ambulance. “It seems Unilever is using Brexit as an excuse to hold Tesco customers to ransom.”“I am more angry at Unilever than I am at Tesco,” said Walker, a 43-year-old regional manager for St. John Ambulance. “It seems Unilever is using Brexit as an excuse to hold Tesco customers to ransom.”
6.55pm BST6.55pm BST
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Tesco and Unilever will be glad to put this public spat behind them. But consumers should still brace for price hikes in the months ahead.Tesco and Unilever will be glad to put this public spat behind them. But consumers should still brace for price hikes in the months ahead.
A series of experts have warned today that the weak pound makes this inevitable, even though retailers will try to force suppliers to swallow the cost.A series of experts have warned today that the weak pound makes this inevitable, even though retailers will try to force suppliers to swallow the cost.
Laith Khalaf, senior analyst at financial services group Hargreaves Lansdown, summed it up:Laith Khalaf, senior analyst at financial services group Hargreaves Lansdown, summed it up:
‘This pricing spat is likely to be the thin end of the wedge when it comes to relationships between UK retailers and their suppliers, in light of the pressures now applied by weaker sterling.‘This pricing spat is likely to be the thin end of the wedge when it comes to relationships between UK retailers and their suppliers, in light of the pressures now applied by weaker sterling.
This kind of friction is an inevitable result of the unstoppable force of higher import costs hitting the immovable object of UK retail pricing.This kind of friction is an inevitable result of the unstoppable force of higher import costs hitting the immovable object of UK retail pricing.
6.37pm BST6.37pm BST
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Peace may have broken out, but Unilever products still aren’t available on Tesco’s website tonight:Peace may have broken out, but Unilever products still aren’t available on Tesco’s website tonight:
6.24pm BST6.24pm BST
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There were signs today that Unilever were losing the PR battle with Tesco -- even within the shadow of the Marmite factory.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: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.”“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 BST6.22pm BST
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City AM’s Jake Cordell suspects Unilever have caved in....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?Tesco on #Marmite: "We’re pleased its been resolved to our satisfaction”. Big cave in from Unilever?
6.18pm BST6.18pm BST
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Tesco: We're pleased the situation is resolvedTesco: We're pleased the situation is resolved
A spokesperson for Tesco has told the Guardian that: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”“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.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.....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..Tesco says its dispute with Unilever has "been resolved to our satisfaction" - appears to suggest some compromise deal has been reached..
UpdatedUpdated
at 6.20pm BSTat 6.20pm BST
6.15pm BST6.15pm BST
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Some snap reaction to the peace deal between Tesco and Unilever: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!!!???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' 🙌🏼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 programmesThis 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#Marmite #Brexit #Marmageddon #MattCartoon pic.twitter.com/ZXdJJxJjkG
6.10pm BST6.10pm BST
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The Great Marmite price war will go down as one of the shortest battles in UK business history.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.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.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/Yt0DS4TkLYBritish 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.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
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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
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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
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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
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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