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UK grocery chain struggles to find Heinz baked beans

30.06.2022

London CNN Business It's getting harder for shoppers in the United Kingdom to find Heinz baked beans. Kraft Heinz is behind some of the country's favorite pantry staples, including baked beans and ketchup.

Several Heinz products were out of stock on Tesco's website, including baked beans, ketchup and salad cream.

The magazine that broke the news of the pricing dispute visited a Tesco store in southern England and reported that while some Kraft Heinz products were still available, some others were missing.

According to Kantar, the retailer, which has about 27% of the UK's grocery market, said it had plenty of options to choose from and hoped to resolve the issue soon.

The rising global food and energy costs have squeezed manufacturers, leaving them little choice but to pass on higher prices to retailers and their customers. In May, consumer price inflation in the United Kingdom hit 9.1%, its highest level in 40 years and the highest among the Group of Seven rich countries.

Kraft Heinz told CNN Business that it was working closely with Tesco to resolve the situation as soon as possible. The current economic environment was challenging with rising commodity and production costs making consumers work within tight budgets, according to the company. The US company said that we always look at how we can provide value through price, size and packs.

The cost-of-living crisis is causing customers to cut back, according to UK retailers. More than 44% of adults in Great Britain said last month they were buying less food - up from 18% at the beginning of the year - according to a survey by the Office for National Statistics.

Early this month, Ken Murphy, CEO of Tesco said he had seen early indications of customers changing their behaviors as a result of inflation.

Tesco's spokesperson said that the company was focused on keeping the cost of the weekly shop in check.