Tesco and Unilever settle dispute

Tesco and Unilever settle dispute

 

Tesco has resolved its dispute with Unilever and said the famous brands including Ben & Jerry’s ice cream and Marmite will be back on the shelves. It reflected on Wednesday that Tesco shelves was in short of household brands from Comfort fabric conditioner to Marmite after a dis-harmony with its major supplier. Unilever has stopped deliveries to Tesco after the supermarket disagreed to pay the price rises of about 10% for its various brands.  However, the share prices of both the companies fell on Thursday and Unilever was criticised for the attempt to increase the prices and in the late afternoon they arrived at a deal. Later Univer announced that it is pleased to confirm that the evoked situation with Tesco in the Ireland and UK has been successfully resolved. A tesco spokesperson  told that they always put customers first and they are pleased to inform that the situation has been completely resolved. The statement appears that the two sides arrived at a compromise stage, though neither tesco nor Unilever would reveal any of their talks. The City investors were alarmed at the pictures of empty shelves that appeared in the social media and thereby the Tesco shares slid by 3% and Unilever has declined by 3.4%. But the public spat worked out well for Tesco and the newspapers widely portrait Tesco as the People’s champion on low prices. The big supermarkets are finding it hard to prevent price rises as they are competing to stop their shoppers for taking their trade to other discounters, which particularly sell their own-brand goods.

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