Tesco boss warns on inflation impact for customers
Tesco sees revenue fall 1.5 percent to £9.9 billion ($12.2 billion) in...
Heinz items removed off Tesco shelves due to a pricing dispute. (credits: Google)
Due to a disagreement over pricing, Kraft Heinz, the firm behind some of the UK’s most well-known food brands, has stopped supplying Tesco with the majority of its goods.
A Tesco spokesman expressed regret that some products were temporarily unavailable.
Among the products thought to be impacted are tomato soup, ketchup, and baked beans.
According to the Grocer magazine, which originally reported the falling-out, certain Heinz products are now out of stock.
Food producers have recently reported growing expenses, particularly those for energy and commodities, and some have warned they would have to increase the prices they charge retailers. However, retailers like Tesco are working to keep costs low for customers who are shopping more cautiously due to rising costs of living.
A Tesco representative stated, “We will not pass on unjustified price rises to our customers.”
Customers have “plenty of alternatives to select from,” according to the supermarket operator. Given that Heinz goods are commonplace in many UK families, the retailer won’t want to remove them from its shelves for an extended period of time.
The Tesco spokeswoman stated, “We hope to have this problem resolved soon.
However, Kraft Heinz cited “today’s hard economic environment – with commodity and production costs rising” while stating that it was “working closely with Tesco to remedy the situation as swiftly as feasible”.
The company always considers how it can “offer value through price, size, and packing… at a price point that fits within their budgets,” according to a Kraft Heinz representative.
The statement continued, “We are sure of a successful conclusion with Tesco.”
Speaking on behalf of the grocery behemoth, Tesco claimed it was “laser-focused on controlling the cost of the weekly shop.”
More than ever, we have a duty to make sure customers receive the best value, and we won’t pass on unreasonable price rises to our customers because household budgets are under increasing pressure.
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