British supermarket price war is intensifying as Birds Eye and Walkers demand price rises for their products following an 18% drop in value of pound against dollar post Brexit vote. Birds Eye and Walkers has asked supermarkets for up to 12% price rises. Prominent brands Typhoo and Unilever had hiked prices for their products in the recent past. Birds Eye is also reportedly planning to cut the number of fish fingers in a packet as well.
Irking the latest standoff between household brands and supermarkets, the New-York-listed Nomad Food owned Birds Eye wants 12 percent increase in its prices. Since the raw materials were priced in dollars, the weakening pound makes them more expensive, says the company as a justification for the price hike. After the UK voted to leave the European Union, Pound has fallen 14.5% against the euro and 18% against the dollar. Following this, Bird Eye’s production cost has increased by 5 percent.
Birds Eye also plans to reduce the pack size on selected products to offset production cost increases. It would lessen the number of fish fingers in a packet from 12 to 10 and 20 to 18.
Wayne Hudson, Birds Eye’s UK and Ireland managing director, said: “Increasing costs is not a decision we take lightly, and the last time it was necessary to raise costs was in 2012. As such, we have been in open and collaborative conversations with the retailers for some time now and are working closely with them to minimise any impact on our customers.”
PepsiCo owned Leicester-based Walkers also wants a price hike of between 5% and 10%, taking a 32g bag of crisps from 50p to 55p.