British supermarket Tesco are running short of products after a row with food and grocery manufacturer Unilever.
Unilever have moved to increase the prices of their products by 10 percent after sterling’s recent devaluation. Tesco have so far resisted moves from the company to up the prices of their products, causing a shelf shortage of several items.
However, the bosses of both Unilever and Tesco have said they are sure the situation will be resolved “quickly”.
Marmite, PG Tips tea and Pot Noodles are among the brands taken off the Tesco online store on Thursday. Tesco have thus far refused to up prices, with many analysts agreeing with their position; producers tend to operate with a 20 percent – 30 percent margin, whereas supermarkets struggle with a margin of between 2 and 3 percent.
Both Tesco and Unilever warned on the possibility of increased food prices ahead of the referendum. However, according to a poll by YouGov, it appears that the current goods deficit will hit both Remainers and Leavers alike. According to the survey, Leavers favour Unilever brands such as PG Tips, with Remainers favouring Ben & Jerry’s.
The row has hit the share prices of both Unilever (LON:ULVR) and Tesco (LON:TSCO), dragging the FTSE down from last week’s highs. Unilever is currently down 3.96 percent at 3,576, with Tesco faring slightly better down 2.40 percent (1346GMT).
13/10/2016
