Heinz has stopped supplying Tesco with some of its products in a dispute over pricing. Ketchup, baked beans and tomato soup are among the various products reported to be missing from shelves in certain Tesco stores.
Kraft Heinz said that its production costs were rising but that it was working with Tesco to resolve the situation quickly. In response Tesco has confirmed that it “will not pass on unjustifiable price increases to our customers.”
UK food manufacturers are under substantial pressure because of rising costs, with many warning that they may need to raise prices, or that they have already done so. There has been a reported swing to ‘own brand’ products according to latest industry research, as consumers look for best value and most UK supermarkets are publicising various schemes to keep prices lower for customers facing a cost-of-living increase, many of whom are now shopping more selectively.
A spokesman for Kraft Heinz said: “We are confident of a positive resolution with Tesco. We are sorry that this means some products aren’t available right now, but we have plenty of alternatives to choose from and we hope to have this issue resolved soon.”
Highlighting Heinz baked beans as one of the products affected, the supermarket giant has reportedly told customers to stock up on Branston Baked Beans or Tesco own brand products instead.
Last week the chairman of the supermarket giant Asda, Lord Rose, told the BBC that some Asda shoppers are asking cashiers to stop scanning items when the till total hits £30.00 as they try to cut costs.
Like others, the UK’s third biggest multiple grocer has expanded its cut price groceries with a new range, covering around 300 products. This at a time when all the large grocers are trying to keep prices as low and competitive as possible, particularly on popular everyday items.