Morrisons increases Marmite price by 12.5%

Morrisons increases Marmite price by 12.5%

Morrisons has hiked the price of Marmite in its UK supermarkets by 12.5 for percent. A 250 gram jug of Marmite will now cost £2.64 in Morrisons, reports industry magazine The Grocer. Unilver, makers of Marmite has asked Tesco to increase its price in October. That led to ‘Marmitegate’ row between the supplier and the supermarket which refused to make the price hike.  The price increase in Morrisons now is 2.5 percent more than what Uniliver requested Tesco to make. Unilever faults the weakening pound for the current price hike.

Morrisons said in a statement: “Sometimes we have to increase prices as a result of costs rising although we do our best to avoid this.” More often than not we have been reducing prices and more than 3,000 products are currently cheaper in our supermarkets than they were last year.” Morrisons has increased the prices for three more varieties of foodstuff as well.  Unilever, the Anglo-Dutch food manufacturer, has raised the price for many of its products following the fall in pound. Sterling has lost almost 20 percent of its value against the dollar since the EU submission on 23 June.

On Friday, the proprietor of British Airways (BA), IAG, cautioned that ticket costs may need to ascend after benefits took a hit from the droop in sterling. Microsoft is additionally raising costs for British firms by as much as 22% as an immediate consequence of the fall in sterling after the EU submission. ohn Allan, the chairman of Tesco indicated that the supermarket might consider a price hike owing to the weak pound.  Grocery store prices are “likely” to ascend, said John Allan in an interview with BBC radio. He has faulted the weak sterling, which has fallen 16% against the euro and 19% against the dollar since the EU submission result in June.

Post Brexit referendum the Pound has been weakening and the cost of importing food and other ingredients are mounting, he said. “We are trying to defend our customers from unjustified price increases, but it is likely there will be some price increases going forward,” Allan added.

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