Tesco Pulls Unilever Products Online Over Price Issue Amid Weakening Pound

(RTTNews) - British supermarket chain Tesco Plc has pulled dozens of household products made by its biggest supplier Unilever Plc from its online shopping site over pricing issues amid the weakening British pound.

Tesco has stopped selling products including Marmite, PG Tips tea, Pot Noodles and Surf washing powder in its online site. The Anglo-Dutch consumer-goods company's Comfort fabric conditioner, Hellmann's mayonnaise and Ben & Jerry's ice cream are also absent in Tesco's site.

The pulling row is said to have arose as Unilever attempts to increase wholesale prices, as it faces higher costs due to the fall in sterling.

Following the June 23 Brexit vote, to leave the European Union, the pound has been witnessing a sharp selloff. This resulted in rising the prices by many retailers of imported products that are priced in dollars and euros.

In this scenario, Unilever reportedly demanded Tesco to raise prices on some of its products made with imported ingredients. Tesco Chief Executive Dave Lewis, a former longtime Unilever executive, however, refused to lift prices, leading to the dispute.

Tesco is said to be experiencing availability issues on a number of Unilever products. A Tesco spokesman reportedly said, "We are currently experiencing availability issues on a number of Unilever products. We hope to have this issue resolved soon."

The Wall Street Journal reported, citing people familiar with the matter, that Unilever is in talks with Britain's second-largest grocery chain J Sainsbury Plc, about Unilever's demand for 10 percent average price increase on all its products.