UPDATE 1-Mars stops supply of pet brands to UK's Tesco

·1 min read

(Rewrites lede, adds Tesco's response)

July 5 (Reuters) - Mars Inc has stopped supplying some petcare products to Britain's Tesco, less than a week after U.S. packaged foods company Kraft Heinz pulled several brands from its shelves.

European retailers are locked in extended price negotiations with giant food companies as they fight to retain shoppers and protect their profits.

Britain's largest supermarket chain said the impacted products were limited to Mars' petcare brands and that it hoped to resolve the issue soon.

"With household budgets under increasing pressure, now more than ever we have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers," a Tesco spokesperson told Reuters.

Bloomberg had earlier reported the pause in supply of the petcare brands, Whiskas and Pedigree, while adding that the company's chocolate and confectionery products will remain on Tesco's shelves.

Kraft Heinz last week had stopped supplying some products to Tesco, which resisted charging its customers higher prices for them at a time of surging inflation.

Mars did not immediately respond to Reuters request for comment. (Reporting by Amna Karimi in Bengaluru and Richa Naidu in London; Editing by Shailesh Kuber)

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