Unilever confirms supply dispute with Tesco ‘resolved’

A solitary jar of Marmite sits on a Tesco shelf as the row developed
A solitary jar of Marmite sits on a Tesco shelf as the row developed

The supply situation with Tesco involving the price of Marmite and other products has been successfully resolved, Unilever said.

In a statement the company said the items were once again “fully available”.

A spokesman confirmed: “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.”

A Tesco spokesman said: “We always put our customers first and we’re pleased this situation has been resolved to our satisfaction.”

Earlier, Unilever’s finance chief said that the price of Marmite and other products are set to rise as a result of the collapse in sterling, with experts warning that consumers could have to stomach more pain in the new year.

Speaking alongside the group’s third quarter results, chief financial officer Graeme Pitkethly said: “In the UK, which accounts for 5% of turnover, prices should start to increase to cover the cost of imported goods due to weaker sterling.”

The group, which is also behind brands such as Flora and Persil, is believed to have demanded a 10% price rise due to the falling value of sterling, halting deliveries to Tesco when it refused.

Since the EU referendum on June 23, the pound has lost around 18% of its value against the dollar, resulting in higher costs for retailers.

The stand-off had left the supermarket facing a shortage of brands such as Surf washing powder, Comfort fabric conditioner, Hellmann’s mayonnaise, Pot Noodle and Ben & Jerry’s Ice Cream.

Steven Dresser, retail analyst at Grocery Insight, said there was likely to be a round of price hikes in January as retailers look to pass on higher costs once the festive season is out the way.

“No one wants to put prices up ahead of Christmas. Others may just wait until January.”