Heinz to resume supplies to Tesco after row over price rises
Lorries full of Heinz products will be en route to Tesco on Saturday after the ketchup, baked beans and soup maker said it had reached a deal on price increases with the UK’s biggest supermarket.
Heinz paused supplies to Tesco last week in a dispute over cost price rises thought to be as much as 30% but new supplies are expected to arrive over the weekend.
The battle came as brand owners and other supermarket suppliers try to pass on rising costs of energy, ingredients, transport and labour to supermarkets, which in turn are trying to limit the amount they have to pass on to customers.
Mars, the owner of the pet food brands Whiskas, Dreamies and Pedigree, has also paused supplies to Tesco in a row over price rises.
In a joint statement the Heinz and Tesco said they were “pleased to have reached an agreement that will see the full range of Heinz products return to Tesco shelves and online”.
“Lorries full of Heinz products including Heinz tomato ketchup and Heinz Beanz will hit the road shortly, and Tesco colleagues will be working hard to ensure shelves are filled again over the coming days.
“With British summertime finally here, Tesco shoppers will be able to get all the essentials they need for their perfect summer salad or barbecue, including the Heinz varieties they know and love. It’s great to be back together.”
The dispute is likely to have put both businesses under heavy pressure. Heinz’s ketchup and salad cream are seen as essential items by many shoppers and shortages on the UK’s biggest supermarket’s shelves, before a hot weekend when many barbecues are being fired up, will dent sales of both.
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