Marmite row resolved

Fans of the love-it-or-hate-it spread have breathed a sigh of relief after Tesco and Unilever came to a deal to get marmite back on the supermarket’s shelves.

 

British-Dutch multinational Unilever says it has come to an agreement with Tesco meaning that favourite brands including Marmite and Ben & Jerry’s ice-cream will be available once more at the supermarket giant.

 

Shoppers noticed on Wednesday that Tesco was running out of stock of family favourites including Pot Noodles and Dove soap.

 

It soon emerged that Unilever had asked for a 10% price rise to offset the negative cost caused by the plummeting value of the pound following the Brexit vote.

 

But, Tesco refused to give into the demands, meaning the shelves were soon stripped of Marmite by those who feared they would have to stockpile the spread or face being unable to purchase it at all.

 

The row led to share prices falling for both companies involved, with Unilever under fire for using Brexit as an excuse to raise prices. Tesco shares dropped by 3 per cent, with Unilever shares falling slightly more at 3.4 per cent.Images of empty supermarket shelves which had started appearing on social media had worried investors and retail analysts.

 

However, the firm has now released a statement, which said: “Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved.

“We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available. For all those that missed us, thanks for all the love.”

Meanwhile, Tesco released their own statement saying that it had put its customers first when negotiating with Unilever and it was pleased that both parties had now reached an agreement.

However, neither side was willing to say what the terms were of any new deal which had been agreed.

Analysts believe that the winner out of the two firms, if there is one, will be Tesco as the supermarket has been praised for standing firm to keep prices low for its customers.

However, despite the quick resolution to this particular problem, it has highlighted that Brexit could soon lead to price increases across the retail sector. British consumers are now bracing themselves for the price of goods to rise.

Experts are predicting that food prices will rise by around three per cent as Britain continues to press ahead with its plans to leave the EU.