Heinz baked beans removed from Tesco shelves in row over ‘unjustifiable’ price rise

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Supermarket points shoppers to rival products



Heinz has pulled its baked beans and ketchup from Tesco’s shelves in a row over prices.

US conglomerate Kraft Heinz has paused supplies of some products to Britain’s largest supermarket, triggering gaps on shelves and Tesco’s website.

It stems from a dispute between the two businesses over putting up the price of some Heinz products as costs rise in the food supply chain.

Heinz is understood to want to raise prices but Tesco has resisted, publicly defending its decision to protect its customers from ‘unjustifiable price increases”. Highlighting Heinz baked beans as one of the products affected, the supermarket told customers to stock up on Branston Baked Beans or Tesco own brand products instead.

The row is reminiscent of “Marmitegate”, which saw jars of the spread disappear from Tesco shops in 2016 as the supermarket resisted owner Unilever’s bid to raise wholesale prices.

A spokesman for Kraft Heinz said the company faced significant increases in commodity and production costs and wanted to provide products at the right price “without compromising quality”.

Kraft Heinz is now in negotiations with Tesco to resolve the disagreement and hopes to restore its products to the supermarket’s shelves soon.

A spokesman for Tesco said the company was “laser-focused on keeping the cost of the weekly shop in check”.

They said: “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.

“We are sorry that this means 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.”

A spokesman for Kraft Heinz said: “We are confident of a positive resolution with Tesco.”

[dutchman]

Heinz could easily retaliate by cutting-off Tesco's own-brand as they are made in the same factory!

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Heinz defeats Tesco in baked beans price row

Tesco has bowed to pressure from the US owner of Heinz following a price row and agreed to pay more to keep supermarket shelves stocked with baked beans and ketchup.

Heinz, which is owned by Kraft Heinz, and Tesco said they had resolved a row over pricing which had seen supplies paused by the US group when Tesco refused to pay more for its products. Heinz sets a cost price for its goods, and then recommends what price retailers can sell them at.

In a joint statement, the companies said: "Tesco and Heinz are pleased to have reached an agreement that will see the full range of Heinz products return to Tesco shelves and online, continuing to offer our customers great value on the nation’s favourite Heinz varieties.

“Lorries full of Heinz products including Heinz Tomato Ketchup and Heinz Beanz will hit the road shortly, and Tesco colleagues will be working hard to ensure shelves are filled again over the coming days."

Tesco is understood to have agreed to pay more for Heinz products, after having previously said it was seeking to protect its customers from "unjustifiable price increases”.

The supermarket had previously been selling Heinz products for less than its rivals. Figures from Assosia, compiled for the Telegraph, showed a 415g can of Heinz baked beans was on sale for £1 at Tesco, compared to £1.20 at Asda and £1.20 at Sainsbury's.

Heinz ketchup, meanwhile, was selling for £2 in Tesco, compared to £2.79 in Asda and £2.80 in Sainsbury's.

The row had meant stocks of Heinz products were running short in many of Tesco's stores and online. Deliveries are expected to start arriving in Tesco stores from early next week.