Tesco is facing a shortage of roasted Heinz beans, ketchup and salad cream after a conflict with the American brand due to price increases.
Heinz has paused deliveries of a number of key products in this line, which has already left shelves empty in some stores and items out of stock on the Tesco website.
A Tesco spokesman said: “As household budgets are under increasing pressure, we now have a greater responsibility than ever to ensure that customers receive the best possible value and will not pass on unjustified price increases to our customers.
“We regret that this means that some products are not available at the moment, but we have many alternatives to choose from and we hope that this problem will be resolved soon.”
The supermarket added that it is “laser-focused on keeping the price of the weekly store under control” as food price inflation rises, contributing to the cost of living crisis.
Heinz said: “We are working closely with Tesco to resolve the situation as quickly as possible. In today’s challenging economic environment – with rising costs for goods and production – many consumers work on a limited budget.
“We are always looking at how we can deliver value through price, size and packaging so that consumers can enjoy the products they love and trust at a price that works within their budgets without compromising on quality. . We are confident of a positive decision with Tesco. ”
Heinz was founded in Pittsburgh, Pennsylvania, in 1869, but has been manufacturing its products for the British market in the United Kingdom since the early 1900s.
A new study for the trade magazine The Grocer, using data from Assosia, reveals a jump in the prices of Heinz products in other supermarket chains in recent weeks.
The price of a pack of 4x400g Heinz Cream of Domat Soup, for example, has risen 40% from £ 2.50 to £ 3.50 at Sainsbury’s, while a 4x200g pack of roasted Snap Pots has risen 20% from £ 2.90 to £ 2.90 in Morris £ 2, £ 2. .
A box of roasted beans of 415 grams at Asda rose from 90 pence to £ 1.20 – the price all major chains now charge, with the exception of Tesco, which charges £ 1, and Morrisons, which charges £ 1.19. pounds, according to the price comparison site Trolley. co.uk
Similarly, Tesco charges £ 3.15 for a 910 g bottle of Heinz Tomato Ketchup, compared to £ 3.50 for all its major competitors except Morrisons, which charges £ 3.49.
Sign up for the Business Today daily email or follow the Guardian Business on Twitter at @BusinessDesk
Ged Futter of consulting firm The Retail Mind, which advises many supermarket suppliers, said the rise in prices at Heinz was not surprising, given that costs were rising by between 20% and 40% in many categories.
He said the companies he worked with had increased prices by an average of 25% over the past year as the price of energy, vehicle fuel, ingredients such as tomatoes and cooking oil and packaging materials such as cardboard and canned food had risen. essentially.
Tesco said it would be the “least and last” with rising prices, and for suppliers they must decide whether to give Tesco a better deal or if [all their clients] they get the same deal, and if Tesco doesn’t like it, they won’t do it, ”Futter said.
Tesco’s latest dispute with a major supplier comes six years after well-known brands, including Marmite and Ben & Jerry’s, were withdrawn from its shelves successively with Unilever.
The deal was reached within 24 hours after the order became public after the share price of the two companies fell.
Add Comment