Tesco, Heinz Settle Dispute on Price Hikes Amid Rising Inflation
2022.07.08 19:30
Tesco, Heinz Settle Dispute on Price Hikes Amid Rising Inflation
(Bloomberg) — Tesco (OTC:TSCDY) Plc and food giant Kraft Heinz (NASDAQ:KHC) Co. have settled a dispute over price increases which left the UK’s biggest supermarket chain without products including brand-name ketchup and baked beans.
The full range of Heinz products will now return to Tesco shelves and its online shopping site in the coming days, the two companies said in a joint statement Friday, without detailing the size of any price increases.
Shipments of Heinz products “including Heinz Tomato Ketchup and Heinz Beanz will hit the road shortly,” they said.
Tesco last week called price increases from the US food manufacturer “unjustifiable,” and said there were ample alternatives for shoppers to choose from among the grocer’s store-brand ketchup and baked beans.
The UK company is still negotiating with Mars Inc., which has stopped supplying its pet food brands Whiskas and Pedigree due to a dispute over price increases.
The highest inflation in 40 years has pushed British consumers to consider cheaper own-label brands and tighten their spending.
Tesco Chairman John Allan said earlier this year that some cash-strapped shoppers have begun asking checkout staff to stop ringing up items when their total hits £40 ($48).
©2022 Bloomberg L.P.
