The largest British retail chain Tesco removed from sale in its online shop dozens of popular products due to disagreements with their manufacturer about prices, reports the BBC Russian service</u>.

The reason for the dispute was the desire of the transnational Corporation Unilever sharply – on average a 10% increase in wholesale prices for some goods due to a strong fall in the value of the British pound following the decision to exit the European Union.

Unilever wanted to increase the price of brands such as, in particular, a popular spread for sandwiches, Marmite, washing powder, Surf and Persil, Dove soap, ice cream Ben and Jerry’s and a number of other goods.

British retailers, however, do not think the price increase is justified since the products are mainly produced domestically and its pricing does not depend on the fluctuations of the national currency. Therefore, the requirement to increase the wholesale price with reference to the falling pound is nothing more than a smokescreen.

At Unilever declined to comment on the dispute with retailers. At Tesco, the BBC said only that experience problems with the supply of certain goods company Unilever, expressing hope that this issue will be resolved soon.

Some analysts had previously warned that British buyers should be prepared for a certain increase in food prices as the retailers, despite the reluctance to raise prices, most likely, will not fully compensate for the increasing costs of suppliers, associated with higher prices of imported goods due to the devaluation of the pound.

However, the problem is that British retailers are operating under conditions of extremely fierce competition, limited in their ability to raise prices.



The largest British retail chain requires suppliers not to raise prices after the fall of the pound 13.10.2016

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