Robert Besser
02 Jul 2022, 16:08 GMT+10
LONDON, England: US food company Kraft Heinz has pulled some of its products from Tesco, the UK's largest supermarket group, which has refrained from charging customers higher prices, despite surging inflation.
Tesco apologized to customers for the absence of popular Kraft Heinz products, such as baked beans and tomato ketchup, stating, "We will not pass on unjustifiable price increases to our customers."
Kraft Heinz said it is working hard to offer good value products in a market which has been hit by rising commodity and production costs.
Tesco said it hopes the issue will be resolved soon, while a spokesperson for Kraft Heinz said it was working closely with UK supermarkets to quickly resolve the situation.
"We are confident of a positive resolution," they both said.
The incident highlights a wider issue of whether manufacturers, retailers or consumers should bear the brunt of soaring cost inflation.
In February, Reuters reported that European retailers are constantly negotiating prices with major food companies, which have announced plans to increase prices to make up for soaring raw material costs.
A similar row in 2016, dubbed "Marmitegate," saw Tesco removing dozens of Unilever products, including the popular yeast spread, from its website after a plunge in the British pound, partly caused by Brexit, which intensified tensions between suppliers and retailers.
With commodity and production costs rising, Kraft Heinz was seeking ways to provide value for customers "through price, size and packs," without compromising on quality, the US company said.
Tesco, however, noted that with household expenses increasing, it had a responsibility to ensure customers get the best possible value.
Get a daily dose of Cardiff Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Cardiff Star.
More InformationLONDON, England: Following a request by Nigeria's National Commission for Museums and Monuments, the Horniman Museum in London has agreed ...
SUSSEX, UK - After a Premier League game, a fight broke out, leading to the murder of an Irish drug ...
OTTAWA, Ontario: Military trainers from Canada will head to the United Kingdom to teach Ukrainians new techniques for fighting the ...
LONDON, England: British Airways has halted ticket sales for short-haul flights that depart before the middle of August from London's ...
LONDON, England: In 2023, America's Major League Baseball is set to return to London for the first time since 2019, ...
Edinburgh [UK], August 11 (ANI): According to a recent study, a medication commonly used to treat enlarged prostates and high ...
ZAGREB, Croatia: Authorities have said that a weekend bus crash near Varazdin in Croatia killed 12 passengers and injured 32.The ...
WASHINGTON D.C.: The U.S. will participate in a joint military exercise in mid-October with India, less than 62 miles from ...
SEOUL, South Korea: South Korea has launched a domestically manufactured lunar orbiter that took off from Florida's Cape Canaveral Space ...
MOSCOW, Russia: A leading Russian scientist in the field of hypersonic flight, Dr. Alexander Shiplyuk, has been arrested on suspicion ...
LOS ANGELES, California: During a meeting that was disrupted by protesters this week, the Los Angeles City Council voted to ...
WASHINGTON D.C.: The U.S. Justice Department announced this week that former Puerto Rico governor Wanda Vazquez has been arrested in ...