Why Do Heinz And Tesco Have Beef – Instead Of Beans – Right Now?

·3 min read
(Photo: Education Images via Getty Images)
(Photo: Education Images via Getty Images)

(Photo: Education Images via Getty Images)

You might not be seeing some of your favourite Heinz products on the Tesco shelves for a while, as tensions have bean high this week.

It all comes down to a dispute over Heinz’s prices, meaning baked beans, ketchup and tomato soup might not be available.

Here’s everything you need to know to ketchup on the row.

Basically, Heinz sauced a new price...

Kraft Heinz, the parent company, increased the prices of some household products due to the high rise in production costs.

Heinz is far from the first manufacturer to struggle with rising production prices that everyone is experiencing across Britain,  due to the climbing cost for fuel and commodities.

Kraft Heinz said that it had to increase its prices due to “today’s challenging economic environment – with commodity and production costs rising”.

Defending the rise, a spokesperson said the company was always trying to “provide value through price, size and packs... at a price point that works within their budgets”.

... And Tesco canned it

Yet, Tesco is trying to keep costs down for consumers amid the cost of living crisis.

A spokesperson said that it was ”laser-focused on keeping the cost of the weekly shop in check”.

They added: “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.”

The products no longer available include:

  • Beanz 4x415g

  • Sticky Barbecue Sauce 500g

  • Salad Cream 605g

  • Baked Beans & Pork Sausages 200g

  • Snap Pots 4x200g

  • Beanz No Added Suggar 200g

  • Chicken Noodle Soup 400g

In response, Tesco said: “We will not pass on unjustifiable price increases to our customers.

“We’re sorry that this means some products aren’t available right now. We hope to have this issue resolved soon.”

They concluded: “We are confident of a positive resolution with Tesco.”

But it’s not uncommon

The director of consultancy at The Retail Mind, Ged Futter, told the BBC these kind of arguments are more common than realised.

“Heinz are saying if you’re not prepared to take it [at that price] we will stop supply.

“More manufacturers are saying that to retailers than ever before. I have examples of supplies being stopped in every single retailer except Aldi.”

He claimed that manufacturers have had to absorb food price rises from retailers four of five times over the last 18 months.

Futter predicted that there will be a resolution, “as Tesco can’t afford not to have Heinz products and Heinz can’t afford to not be in Tesco”, but it’s unclear what that will look like.

This isn’t the first time Tesco has had a public dispute over prices with household names either.

Marmite, PG Tips Tea and Pot Noodles were all removed from the supermarket’s website due to an increase of prices from Unilever back in 2016, in what was known as the Marmite saga.

And this row is not exactly a surprise, considering the cost of living crisis gripping the nation at the moment.

Inflation is at a 40-year high, and more than two million Brits have admitted that they miss at least one meal a day to cut costs.

Tesco has also pointed out that customers are altering their behaviour due to the price increases, while Asda told the BBC shoppers people were trying to put a £30 limit on their food at checkouts.

This article originally appeared on HuffPost UK and has been updated.

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