To think well done, Tesco?

(85 Posts)
MilkandAssal Sat 15-Oct-16 19:39:55

The whole Tesco & Unilever hoo-ha.

I understand people have first world problems, crying about Marmite and Hellmans and whatever else is super thrilling on their weekly shop; but am I alone in thinking well done Tesco? Well done for not buckling under immense pressure, and that 10% price hitch which would have smacked Tesco shoppers in the bollocks?

Now that Unilever have been told to get fucked, I'm sure that the other supermarkets won't be willing to take the 10% increase either. Am I missing a bigger picture?

I buy Tesco Marmite and mayonnaise anyway, nothing is irreplaceable but have we really become that materialised that #marmitegate is a thing?

MargotsDevil Sat 15-Oct-16 19:44:53

There have been numerous stories over the years about Tesco using bullying tactics against suppliers - this is far from the first. Milk prices is an obvious place to look first - dairy farmers often have to sell for a pittance. Based on previous incidents I'd definitely not be keen to congratulate Tesco on their methods to be honest.

lummox Sat 15-Oct-16 19:45:00

Do you know the terms of the agreement? I thought it was confidential. Can you tell me the details, please.?

The issue is significant food inflation rather than newspaper headlines. That clearly affects lots of people. If it doesn't affect you (either because you are rich or because you are astroturfing on behalf of Tesco) then you don't need to worry about it.

EveOnline2016 Sat 15-Oct-16 19:49:39

Other supermarket will use it to thier advantage.

Accept the price hike at first then up the price slowly so much that the customers don't really notice.

MilkandAssal Sat 15-Oct-16 19:53:34

But why? Why should they palm that off on us? Tesco has a vested interest in Britain especially post Brexit. I don't think they should be bullied with price hitches, they certainly don't need to be.

Morrisons spokesperson said they were waiting for the first supermarket to "break" but weren't looking forward to negotiations.

I don't want a 10% increase. I don't drink PG tips so can't say I care too much, but the price would be slammed over all produce. I think UL just used this as an excuse to hoist up prices.

MilkandAssal Sat 15-Oct-16 19:54:22

I personally, wouldn't stop shopping at Tesco because I couldn't buy, say, branded Marmite. I'd just buy another brand. I can't see what everyone is crying about, really, we've been saved 10%.

AmberEars Sat 15-Oct-16 19:55:23

The problem IMO is that Tesco uses these same tactics against small producers, who can't stand up to them like Unilever can, and end up selling their produce at unfairly low prices.

Remember, all Tesco are interested in is their own profits. Not protecting the poor consumer.

RiverTam Sat 15-Oct-16 19:57:15

Tesco are notorious for bullying their suppliers and being very aggressive in general.

I avoid them as much as possible tbh.

WamBamThankYouMaam Sat 15-Oct-16 19:58:05

Unilever haven't been told to get fucked. They've settled on a compromised amount, probably 4 or 5%, which may well be what Unilever wanted in the first place.

There are cost increases in production, that is a certain absolute unavoidable fact. There are also predictions of 3% imported inflation in the next 12 months. There are different ways to approach this, but there will be increases passed on through the customer supply chain, of which tesco are both a customer and supplier, so they will then pass the cost on to their end customer.

Reducing complexities, number of items per type, more efficient stockholding etc will all help to absorb the costs, but they will increase.

Also - your tesco own brand marmite and margarine will increase in price. It is raw materials which have risen in price due to the 15% loss in currency conversion from euro to pound. Global suppliers have also started invoicing for materials sourced and supplied in the UK, in euros too so they can benefit from the positive currency conversation the other way.

MadamDrag0n Sat 15-Oct-16 19:59:05

If only they didn't treat family farms the same as they treat a multinationals. But yes Unilever can go get fucked. There are other companies who make the same shite as them.

AmberEars Sat 15-Oct-16 19:59:11

My friend who is a farmer says that Tesco is the worst of the supermarkets in terms of their treatment of suppliers.

WamBamThankYouMaam Sat 15-Oct-16 19:59:56

And you haven't saved anything. Every single manufacturer of every single product will be in exactly the same position as Unilever. The material cost increase can only be absorbed for so long.

NicknameUsed Sat 15-Oct-16 19:59:57

"There have been numerous stories over the years about Tesco using bullying tactics against suppliers - this is far from the first. Milk prices is an obvious place to look first - dairy farmers often have to sell for a pittance. Based on previous incidents I'd definitely not be keen to congratulate Tesco on their methods to be honest."

This ^^

I went to Sainsburys yesterday. I'm not drinking inferior tea brew

Normandy144 Sat 15-Oct-16 20:04:36

I find it quite amusing how Tesco (and I expect Tesco are chuffed to bits) are coming across as some sort of Robin Hood of the people against the nasty mean supplier Unilever, when the reality is that Tesco are usually the bully in the scenario.

MilkandAssal Sat 15-Oct-16 20:07:02

So people don't buy milk from Tesco? Surely all the hard done farmers can go and sell their milk to the other big four? Why don't they tell Tesco to get fucked?

MilkandAssal Sat 15-Oct-16 20:07:35

...and don't assume that customers aren't shareholders. Lots are, it's win win for some.

MrsBernardBlack Sat 15-Oct-16 20:08:35

Go and read Joanna Blythman's book Shopped, and then come back and tell us how wonderful Tesco are.

It is only companies as huge as Unilever who can even think of trying to stand up to them and their bullying pricing policies.

WamBamThankYouMaam Sat 15-Oct-16 20:16:19

Because tesco have them over a barrell. They enter into lengthy contracts with heavy exit penalties, upon which finance is often secured for more advanced machinery, so it's a catch 22.

Although farmers over in Ireland have very much been telling them to fuck right off.

And I'd not be congratulating yourself on your shareholder dividend. The big 4 are already losing turnover to the hard discounters. I'd expect that to accelerate even more rapidly in the coming economic climate. Not good news for shareholders.

zen1 Sat 15-Oct-16 20:19:07

Sainsburys have already put Marmite up by 15p. I'm sure the others will follow suit.

GeorgeTheThird Sat 15-Oct-16 20:19:56

You can get own brand marmite?

<misses point>

TeacherBob Sat 15-Oct-16 20:21:14

Tesco stood up against ulever to protect their profit margins

no other reason

MilkandAssal Sat 15-Oct-16 20:21:53

Yes and it tastes the same.

I just think that Tesco wouldn't be the leading supermarket (not including German convenience stores) if people didn't spend their money there. They do. Maybe you lot don't, but they do. Then again you're paying more at Sainsbos anyway I'd assume.

squoosh Sat 15-Oct-16 20:22:04

Now that Unilever have been told to get fucked

Yeah it was just like that OP. Tesco are the shining knights who showed the big baddies what's what........

Costs will be rising. Accept it now.

MilkandAssal Sat 15-Oct-16 20:24:52

But we don't pay 10% more on products. Is that not a good thing? Do we hate Tesco for everything they do?

WamBamThankYouMaam Sat 15-Oct-16 20:29:43

Tesco have a bigger market share because they have a bigger presence in the market. It isn't because they offer a superior experience to any of the other big 4. People generally tend to opt for whichever supermarket is more convenient for them in terms of location and access.

However you choose to look at it, the facts still remain. The big 4, tesco most notably, are losing market share hand over fist to the hard discounters. People are shopping at the German supermarkets, as well as places like B&M. This has consistently been the trend for some years now and will certainly continue and indeed accelerate as a result of Brexit having such a detrimental effect on the pound. We now have the weakest of all the major currencies in the world.

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