SuperValu warns over stock availability due to sterling pricing
SuperValu advised shoppers that it “may experience supply issues” as a result of the row which has seen Tesco in Britain remove dozens of popular brands like Marmite, PG Tips tea and Pot Noodles from its website.
In a statement, SuperValu said it was determined to ensure any savings as a result of the fall in sterling was passed onto its customers.
“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,” it said a statement.
The standoff could mean that popular Unilever products sold in some stores here like Hellmann’s Mayonnaisse, Lyons Tea and Knorr soups may not be restocked in the coming weeks once stock is sold.
Unilever is also believed to have sought a price increase from Dunnes Stores but was also rejected. However, its supply chain is not expected to be affected.
In Britain Unilever had been accused of “exploiting consumers” after reportedly demanding a 10% price rise due to the falling value of sterling. It was understood to have halted deliveries to Tesco when it refused.
The move was understood to have hit online sales rather than products in store. Shoppers trying to buy items from Tesco’s website earlier yesterday were met with the message ‘Sorry, this product is currently not available’.
However, last night Unilever said the supply situation with Tesco involving the price of Marmite and other products had been successfully resolved.
In a statement, the company said the items were once again “fully available”.
A spokesman confirmed: “Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved.
“We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available.”
Meanwhile, SuperValu yesterday announced a major overhaul of its customer reward/ loyalty scheme; signing up Bank of Ireland as a corporate partner. Members of SuperValu’s Real Rewards programme will be awarded double points when they use their Bank of Ireland credit card to purchase groceries. They will also earn a point each time they spend €10 on their credit card for any other purchase.
SuperValu is looking to build a portfolio of partnerships to enhance its rewards scheme. It already has a similar deal with Electric Ireland, where shoppers can save around €60 a year from their electricity bill. The supermarket hopes to add another two partners within the next four-to-five months and have around 10 in two years.
