Mord suppliers demanding higher prices from supermarkets

8 November 2016 - Janet Bird

birds eye waffles

The friction between suppliers and supermarkets over pricing which led to 'Marmitegate' shows no signs of abating.

Although Tesco and Unilever managed to resolve the spat that led the supermarket to clear its shelves of popular products such as Marmite and Pot Noodles in October, more food manufacturers are now demanding supermarkets pay extra for their goods.

Birds Eye and Walkers have joined Typhoo Tea and Unilever in hiking up the price of their products, claiming the plummeting value of the pound against the US dollar has led to increased import costs for raw materials, which are valued in dollars.

The majority of the price increases being requested by Birds Eye and Walkers are believed to be between five and ten percent.

According to The Guardian, Birds Eye is even considering reducing pack sizes in the UK to offset cost increases.

The latest developments add weight to concerns expressed by retail analysts in the wake of Marmitegate that such pricing disputes might be a sign of things to come as the post-Brexit impact on the value of the pound begins to bite.

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