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  • The supermarket rows you don’t usually hear about

     geemong updated 1 month, 1 week ago 1 Member · 1 Post
  • geemong

    July 3, 2022 at 3:52 am

    The supermarket rows you don’t usually hear about

    Rows between big brands and supermarkets normally remain behind closed doors, but now one has dramatically burst into the open.

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    Britain’s biggest retailer Tesco is at loggerheads with Kraft Heinz, one of the world’s largest food manufacturers.

    It’s led to some of the country’s favourite products such as Heinz ketchup and baked beans disappearing from Tesco’s shelves.

    Kraft Heinz has hit the pause button on deliveries in a disagreement over how much Tesco is prepared to pay for its products.

    It’s an illustration of the challenges facing suppliers and supermarkets as they grapple with huge cost increases.

    But who should bear the pain of absorbing soaring raw material costs, energy price rises, and higher fuel bills for deliveries?

    Price negotiations are happening across retail. They’ve been going on for many months.

    “Suppliers are now saying: ‘This is what I can afford to sell this product to you for. And if you don’t agree I am going to stop supplying you,'” says Ged Futter, founder of The Retail Mind.

    He knows more than most how fierce these discussions are. Mr Futter is a former buyer for Asda and now advises suppliers on how to negotiate with retailers.

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