KraftHeinz manufactures cupboard staples including tomato ketchup
(Picture: Scott Olson/Getty Images)KraftHeinz the company behind Heinz Baked Beans and Heinz Tomato Ketchup has stopped supplying the UK’s largest supermarket Tesco with some products in a dispute over pricing.
The pricing row is understood to have impacted some of the lesser known brands in Heinz’s portfolio including Sticky Barbecue Sauce and Chicken Noodle soup as stocks run low, but could move on to more familiar British cupboard staples should the issue not be swiftly solved between the US FMCG giant and the UK’s largest supermarket.
According to leading trade title The Grocer that first reported the shortages Heinz prices have been increasing since the beginning of June across the majority of the larger supermarkets that stock branded goods.
Prices have been rising at supermarkets due to spiralling inflation and supply chain issues caused by logistics problems, staff shortages and restrictions of raw materials.
The increase in food prices has helped push inflation to a 40-year high and shoppers are already picking and choosing the goods they buy with many cutting out more expensive branded products in favour of supermarket own brands.
A spokesperson for KraftHeinz, said: “We are working closely with Tesco to resolve the situation as quickly as possible. In today’s challenging economic environment – with commodity and production costs rising – many consumers are working within tight budgets.
“We always look at how we can provide value through price, size and packs so consumers can enjoy the products they love and trust at a price point that works within their budgets, without compromising on quality. We are confident of a positive resolution with Tesco.”
Tesco said: “We’re laser-focused on keeping the cost of the weekly shop in check, offering customers great value through our combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices.
“With household budgets under increasing pressure, now more than ever we have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers.”
