SuperValu says it is not going to accept price increases, which its believes will be passed down to consumers. This comes after Tesco UK pulls British household staple Marmite from its shelves, when Tesco refused to honour a 10% hike in price on the product supplier Unilever proposed.
Tesco UK will no longer restock any of the 200 products supplied to it by Unilever for the foreseeable future. A move that maybe a cause for concern for their consumers who are loyal to their favourite brands such as PG Tips and Persil to name but a few.
A statement issued by SuperValu explained, “In light of the recent fall in sterling, we have been actively working with relevant suppliers to ensure that savings are passed onto consumers. It is important to note that these discussions are ongoing.”
Negotiations are underway between Supervalu and Unilever in order to see what options are available to them. “Due to our refusal to accept what we consider to be an unjustified price increase, we may experience some supply issues on certain Unilever products. Negotiations with Unilever, however, are continuing and we are examining all options open to us. We would stress that this is not our desired outcome, but we do not believe a price increase on the products under discussion is justified given the current exchange rate. In fact, we believe that a price decrease is warranted given the fall in the value of sterling against the euro.”
Earlier today SuperValu launched a price cut campaign, with an investment of €14 million, on over 800 product lines. It also relaunched its Real Rewards programme, promising to even more savings for consumers in partnership with Bank of Ireland and Electric Ireland.
© 2016 - Checkout Magazine by Donna Ahern