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Kraft Heinz pauses supply of popular products to Tesco amid price dispute

Kraft Heinz has paused the supply of some products, including baked beans and ketchup, to Tesco which resisted charging customers higher prices for them at a time when… View Article

FOOD & DRINK

Kraft Heinz pauses supply of popular products to Tesco amid price dispute

Kraft Heinz has paused the supply of some products, including baked beans and ketchup, to Tesco which resisted charging customers higher prices for them at a time when many are feeling the cost of living strain.

Tesco has apologised for the absence of the popular products from its shelves but said it would “not pass on unjustifiable price increases to our customers”.

A Tesco spokesman said: “We have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers.

“We’re sorry that this means some products aren’t available right now.” The spokesperson added that Tesco “hoped to have this issue resolved soon”.

Tesco said it had good availability across alternative brands, including Branston Baked Beans and its own brand products.

A Kraft Heinz spokesperson said the company was “working closely with Tesco to resolve the situation as quickly as possible”.

Nidhi Chauhan, senior consumer analyst at GlobalData, a leading data and analytics company, commented: “Kraft Heinz has stopped supplying products to Tesco in a disagreement over pricing, as a rise in energy and commodity prices combined with supply chain challenges are forcing some manufacturers to raise prices.

“However, with three out of four UK consumers (76%) concerned about the impact of inflation on their household budget, according to a recent GlobalData survey, retailers are resisting passing on any increase to consumers as they strive to keep prices low and maintain their price proposition in an increasingly price sensitive and competitive market.

“Further price increases might lead cash-strapped consumers to look elsewhere to find grocers offering better deals and better value for money.

“Rising inflation and a gloomy economic outlook suggest this might just be the beginning of supplier lead price increases as other manufacturers face similar challenges.”

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