Unilever may have resolved its dispute with Tesco over the price of Marmite but it has become embroiled in another row over price increases with SuperValu, a big Irish supermarket chain.
SuperValu said on Thursday it had refused to accept “an unjustified price increase” demand from Unilever for items supplied by the the global consumer goods company and that as a result its stores “may experience some supply issues on certain Unilever products.”
The dispute with SuperValu emerged as Unilever said it had settled its dispute with Tesco over price increases it said were necessary because of the sharp fall in the value of the pound since the UK referendum on leaving the EU.
SuperValu, which is owned by Ireland’s Musgrave family, said that in its view a price cut on Unilever products was warranted given the fall in the value of sterling against the euro since the Brexit referendum.
It did not say which products might be affected, but it is understood to affect about 500 of the 800 items it buys from Unilever.
In its statement, SuperValu said:
Due to our refusal to accept what we consider to be an unjustified price increase, we may experience some supply issues on certain Unilever products. Negotiations with Unilever, however, are continuing and we are examining all options open to us.
We would stress that this is not our desired outcome, but we do not believe a price increase on the products under discussion is justified given the current exchange rate. In fact, we believe that a price decrease is warranted given the fall in the value of sterling against the euro.
Unilever said it had no comment on the dispute with SuperValu.
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