Friday 1 July 2022

Heinz Price Dispute

 
Heinz has stopped supplying Tesco with some of the UK's family favourite products in a dispute over pricing. Baked beans, ketchup and tomato soup are among the cupboard staples missing from shelves in some Tesco stores. Kraft Heinz, which owns the brand, said its production costs were rising but it was working with Tesco to resolve the situation quickly. But Tesco said: "We will not pass on unjustifiable price increases to our customers." "We're sorry that this means some products aren't available right now," a Tesco spokesperson said. "We hope to have this issue resolved soon." In recent months food manufacturers have reported rising costs, including for energy and commodities, with some warning they would need to raise the prices they charge to retailers. However supermarkets such as Tesco are striving to keep prices low for customers facing a cost-of-living squeeze and shopping more carefully. Manufacturers were absorbing unprecedented food price rises from retailers for the fourth or fifth time in the last 18 months, he said.