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Tesco brand price dispute 'resolved' Tesco brand price dispute 'resolved'
(35 minutes later)
Issues surrounding the supply of leading brands including Marmite to Tesco have now been resolved, Unilever has said.Issues surrounding the supply of leading brands including Marmite to Tesco have now been resolved, Unilever has said.
The supermarket giant and the the UK's largest food manufacturer had been locked in a battle over wholesale prices. The supermarket giant and the UK's largest food manufacturer had been locked in a battle over wholesale prices.
Unilever wanted to raise its prices by about 10% to compensate for the steep drop in the value of the pound.
Brands including Hellmann's Mayonnaise had been removed from Tesco's website.Brands including Hellmann's Mayonnaise had been removed from Tesco's website.
"Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved," Unilever 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."
Supermarkets frequently renegotiate supplier prices, but it is unusual for a dispute to be made public.Supermarkets frequently renegotiate supplier prices, but it is unusual for a dispute to be made public.
Sterling has dropped by about 16% against the euro and 18% against the dollar since the UK's vote in June to leave the EU.
The sharp drop has left suppliers and retailers dealing with the effects of higher bills for imported goods.
Unilever is the UK's biggest grocery manufacturer, but as many of its products are made outside the UK, it had argued it should be getting more.
Supermarket profit margins have already been squeezed by a long-running price war as the big established retailers try to stem the loss of market share to discounters such as Lidl and Aldi.