Irish retailer SuperValu, which is part of Musgrave Group, has said that it may ‘experience some supply issues on certain Unilever products’, following the FMCG giant’s decision to implement price increases on some products in the UK.
The retailer’s announcement follows Tesco’s move yesterday to remove Unilever brands from its virtual stores, as a result of price increases on products such as Marmite, PG Tips and Pot Noodle. This dispute has since been resolved.
SuperValu said that it has refused to accept ‘what we consider to be an unjustified price increase’.
‘In light of the recent fall in sterling, we have been actively working with relevant suppliers to ensure that savings are passed onto consumers,’ the retailer said. ‘It is important to note that these discussions are ongoing.
‘Due to our refusal to accept what we consider to be an unjustified price increase, we may experience some supply issues on certain Unilever products. Negotiations with Unilever, however, are continuing and we are examining all options open to us.
'We would stress that this is not our desired outcome, but we do not believe a price increase on the products under discussion is justified given the current exchange rate. In fact, we believe that a price decrease is warranted given the fall in the value of sterling against the euro.’
In response, Unilever commented, 'There has been no overall cost price increase on the portfolio of products sold to retailers by Unilever Ireland.'
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.