Brexit now affecting supermarkets?

[e1y1]

Tesco has dropped all 200 of Unilever's brands from store shelves, over a dispute over pricing.

Unilever is blaming Brexit as the reason for wanting a 10% price increase for supply of it's products.

Whereas, MPs are saying Unilever are just using Brexit as a smokescreen to raise prices.

Unilever own some of the biggest brands in the UK - Persil, PG Tips, Dove, Hellmans etc.

And with Tesco's being the UKs biggest supermarket chain, this can't be good (other supermarkets have also said they would drop the brands as opposed to absorbing a price hike).

Do you think Brexit is really now affecting our supermarket shelves?

Sorry for the source (but would imagine it's in others too as heard it on the radio) HERE

Project Fear's estimates of price rises were based on sterling dropping in value by 12%. This is now proving to be a conservative estimate; sterling has dropped by 17%.

There are warnings that inflation will hit 4%. The state pension is linked to CPI so pensioners reliant on benefits. They will be more protected. Young single women with children on benefits will be hardest hit.

Who was more likely to vote for Brexit again?

But yes, its Project Fear. Keep believing that. Your bank balance will say different soon enough.

lurking

I voted remain, but getting a bit sick of the continual jumping on and having a go at those that voted Leave.

Scot My colleague was right in calling me a racist?

I am sick and tired of people telling me I am wrong. I voted for what I believe in and I truly believe those who voted remain are wrong, and I'm glad the leave vote won. However, I won't resort to name calling, to saying I told you so, or blaming you for anything that I disagree with.

I do not believe this high reliance on import is in anyway good for a country, not just because it leaves us at the mercy of other countries, of their laws and regulations that we have no control over but also because of the impact of importing on the environment.

Unilever is just trying to make bigger profist from Brexit. For example England has a factory that makes all of the worlds Marmite, it exports 95% of it. So due to the fall in the pound the the price of Marmite should actually be falling. Yet Unilever want to add 10% to it. Greedy bastards.

Where else do they eat marmite? I'm guessing export sales are pretty low.....

Unilever may be the first, but they won't be the last. If the pound continues to plummet, international companies who deal in dollars and euros will have to charge more. Companies like Unilever know the value of their brand and the importance of keeping products on the shelves VERY well. I don't believe for a second that they have made this decision without taking those aspects into consideration and factoring it in.

I find the marmite discussion the most interesting thing on this thread. I wonder what the costs are to produce a jar of marmite. How much comes from raw ingredients? Probably a very, very small amount. The bulk is probably from cooking, bottling and transporting.

This is a power play between two big companies. And as someone up thread has pointed out, we aren't privy to the details needed to determine who is being cheeky here. I heard an expert on radio 4 say this morning to expect grocery price rises of 5% in the medium term. This will hit us even if we don't buy a lot of processed stuff. We may be able to slowly get used to substituting some home grown/processed things. If cours

I KNEW this would happen. It was so obvious food prices and household item prices would increase.

Complete idiots who voted for Brexit; I hope it hits you hardest!

Time to go back to the old ways and start growing your own fruit and veg. Making your own cereals and keeping a cow in the back garden for milk, yoghurt, butter and cream.

Sorry, meant to say, of course we will have to allow some people into Britain who will harvest our crops if we wang to buy British produce.

Hatesummer, I think I can handle an average 5% price rise over going back to being a critter/small holder!

Critter!

No, crofter

Unilever is just trying to make bigger profist from Brexit. For example England has a factory that makes all of the worlds Marmite, it exports 95% of it. So due to the fall in the pound the the price of Marmite should actually be falling. Yet Unilever want to add 10% to it. Greedy bastards.

That's some pretty interesting economics.

Even if you believe that the input costs of manufacturing in Britain haven't increased, the fact that Marmite is exported makes fuck all difference to consumers buying it here. The supermarket is buying in pounds from the manufacturer who operates in Britain in pounds.

The consumers who might profit from a low pound? Live abroad and have their supermarkets buying with stronger currencies.

'Eat less processed crap'.
UK farmers will lose their European subsidies.Prices are going to go up on non processed, actual food.
Pre Brexit, Bresiters were OK with that. Now its here, they say they are being scapegoated.

Pre Brexit, Brexiters labelled all Remain arguements as scaremongering.
But the fact is, no one knew exactly what would happen if we left the EU, not even the Brexiters.
Well here we are. Unilever is not a charity, They can charge whatever they want for theor products.The pound is weak.

Anyone else feel like yelling what the fuck did you think would happen the vast majority of our home grown food is reliant on immigrant workers, next up price rises on cabbage.....enjoy people....

Yes, Gowgirl, I feel like screaming that all day long.

lurking

I voted remain, but getting a bit sick of the continual jumping on and having a go at those that voted Leave.

They deserve it, and they are getting it. The only silver lining might be that it's a wake up call to be very careful who you side with next time. If you don't want to be characterised as an ignorant racist, then don't vote for what ignorant racists vote for. It's very simple.

All of this just underscores what a fucking lunatic idea it was to have a referendum and make it as divisive as possible.

Camerons name will remain infamous even longer than Blair - and that's saying something.

First World Problems.

....i suppose we could always champion dig for benefits, send em all into the fields and say its just like hopping.....

Gowgirl its all I can do not to scream it at the top of my lungs.

Gowgirl its all I can do not to scream it at the top of my lungs.

It would make financial sense just to continue paying farmers the same subsidy as they are getting now would cost the British taxpayer half as much, because, at present, we pay £6 billion a year into the CAP, but our farmers get only £3 billion back. British farmers are effectively subsidising their competitors: the French, by far the biggest beneficiary of the CAP, receive three times as much.

You know if you want to stay in Europe you can move to a different country

What an ignorant statement.

Gowgirl the little people can always eat cake!

Unilever (and many other large multinationals - including Tesco) have - for whatever reason negociated their contracts in US Dollars. The pound has not just fallen against the euro but against every currency. So all Unilever is doing is sticking to a pre negociated contract that Tesco would pay X US dollars to Unilever for X amount of marmite. The fact that these X dollars are now costing Tesco 14% more is down to the falling pound.

The fact that marmite is made in the Uk does not matter.

We have not been self sufficient in the UK for food for a very long time. Even during rationing we still had to import food. (Lease lend etc)

As the pound continues to fall all our food will rise significantly. (The cost of imports and rising fuel costs) We will have to get used to it.

I don't think leave voters are to blame.
There should never have been a referendum in the first place.
The result is only advisory, government need to act in our best interests and are just not doing so to save themselves.
The campaigns were a joke and surely unlawful and definitely immoral. From those campaigns nobody could have known what they were voting for.
This chaos lies at the governments door.

The Euro is also at a very low point. 6/7 years ago there was near parity between Stg and Euro. It cost about €1.01 for £1. A lot of shops in Northern Ireland were offering parity prices and thousands of Irish people were travelling to NI towns just over the border like Newry and Derry to avail of it. As of today it's still €1.10 for £1, so prices could actually be a lot worse.

What will happen with the Euro is still up in the air and has been for years now as it came very close to collapsing during the great recession as so many of it's economies were basket cases.