Are you a big fan of Marmite, like my girlfriend?
Or maybe PG Tips? Or a favourite of mine…a Pot Noodle?!
All these products and more have recently become scare in Tesco’s shelves, and simply become unavailable on their online site because of a price dispute with Unilever.
The long and short of it is Unilever wanted to increase the price of many products which the supermarket didn’t want to absorb the costs or increase their prices. Unilever’s desire to increase prices came as a result of the sharp decrease in the value of the pound that has been falling since the Brexit vote in the summer.
To shed more light on the issue, the CEO of mobile crowdsourcing company BeMyEye, Luca Pagano provided a price analysis of cupboard essentials across supermarkets, convenience stores and off licences across the country and has revealed some interesting price differences across the UK, particularly for my favourite, Pot Noodles!
Luca believes that this news marks a shift in the ways that retailers price goods, subsequently meaning that the way consumers shop will change. Retailers and suppliers will ultimately need to have a real world view of their pricing and keep their eyes on the competition during these testing times.Many thanks,
Luca Pagano, CEO of BeMyEye:
“Tesco is the first supermarket that has experienced friction with suppliers following the vote for Brexit. Locked in a price war, the grocer has taken the drastic move of removing Unilever items from shelves, including Pot Noodles.
“This is just the beginning of the changing dynamic between retailers and suppliers. Whether prices of well-known brands are driven up, or removed entirely from shelves, this should be a signal for consumers to shop around to find the best prices.
“For example, in our recent Price Index, we found that actually, the cheapest place to buy a Pot Noodle is an off-licence. The average price of a Pot Noodle is £1.02, whereas you could source one for just 50p at your local off-licence.
“Brexit is predicted to affect prices, and thus the way that consumers shop will change. Retailers and suppliers need to have a real world view of their pricing and keep their eyes on the competition during these testing times.”
At the time of writing, Unilever and Tesco have come to an agreement but this might not be the last time consumers are impacted by rising prices as our imports become more expensive due to the falling value of the pound.
So if you excuse me I’m off to my local off-licence to find some bargain noodles.
Toodles!
You must log in to post a comment.