Heinz row leaves shelves empty as prices rise

Heinz row leaves shelves empty as prices rise

Tesco is facing shortages of Heinz baked beans, ketchup and salad cream due to a fallout with the US brand over price increases.

Heinz stopped supplies of a range of key products over the row, which has left shelves empty in some stores and items out of stock on Tesco's website.

We are sorry that some products aren't available right now, but we have plenty of alternatives to choose from and we hope to have this issue resolved soon. The supermarket said it was focused on keeping the cost of the weekly shop in check as food price inflation increased, adding to the cost of living crisis.

Heinz said that they are working closely with Tesco to resolve the situation as soon 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 give value through price, size and packs so consumers can enjoy products they love and trust at a price point that works within their budgets, without compromising on quality. We are confident in a positive resolution with Tesco. Heinz was founded in Pittsburgh, Pennsylvania in 1869, but since the early 1900s has produced its products for the British market in the UK.

A new research for The Grocer trade journal based on data from Assosia shows a surge in prices of Heinz products in other supermarket chains over the past few weeks.

The price of a 4 x 400 g pack of Heinz Cream of Tomato Soup has gone up 40% from 2.50 to 3.50 in Sainsbury s, while a 4 x 200 g pack of baked beans Snap Pots is up 20% from 2.50 to 2.99 in Morrisons.

A single 415 g can of baked beans in Asda has gone up from 90 p to 1.20, the price all major chains are now charging except Tesco, which charges 1, and Morrisons, which charges 1.19, according to the price comparison site Trolley.co. Tesco is charging 3.15 for a 910 g bottle of Heinz Tomato Ketchup, compared to 3.50 at all its major rivals except Morrisons, which charges 3.49.

Ged Futter, consultant at consultancy The Retail Mind, said that the price rises at Heinz were not surprising, given that costs were rising by between 20% and 40% across many categories.

He said the businesses he worked with had put up prices by an average of 25% in the past year as the prices of energy, fuel for delivery vehicles, ingredients such as tomatoes and cooking oil and packaging materials such as cardboard and cans had gone up.

Tesco has said it will be the least and last with price rises, and for suppliers to decide whether or not to give Tesco a better deal or if all their clients are getting the same deal, and if Tesco don't like it, they are not going to deliver, Futter said.

Six years ago, Tesco s latest row with a major supplier comes after well-known brands such as Marmite and Ben Jerrys were pulled from its shelves in a row with Unilever.

After the share price fell, a deal was reached within 24 hours of the row going public.