Tesco, Kraft Heinz strike deal to resolve pricing row

Plastic bottles of Heinz tomato ketchup sit on a shelf in a Tesco retailer in London, Britain June 30, 2022. REUTERS/Simon Newman/File Photograph

July 8 (Reuters) – Tesco (TSCO.L) and Kraft Heinz Co (KHC.O) have struck a deal to convey again the U.S. meals big’s merchandise to the grocery store chain’s cabinets and make them accessible for on-line purchases within the coming days, the businesses mentioned on Friday.

Kraft Heinz had stopped supplying some merchandise, comparable to tomato ketchup and baked beans, to Tesco because the grocery store chain resisted charging clients increased costs for them at a time of surging inflation. learn extra

“Lorries stuffed with Heinz merchandise together with Heinz Tomato Ketchup and Heinz Beanz will hit the street shortly, and Tesco colleagues will … guarantee cabinets are crammed once more over the approaching days,” the businesses mentioned.

Tesco, which has an over 27% share of Britain’s grocery market, had apologised for the absence of Heinz merchandise however refused on the time to move on “unjustifiable” worth will increase to its clients.

Kraft Heinz had mentioned it was battling to offer good worth merchandise in a market hit by rising commodity and manufacturing prices.

European retailers are locked in prolonged worth negotiations with big meals firms which have introduced plans to carry costs to curb the influence of hovering uncooked materials prices, Reuters reported in February. learn extra

Reporting by Yadarisa Shabong in Bengaluru; Further reporting by Richa Naidu in London; Modifying by Shounak Dasgupta and Krishna Chandra Eluri

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