Unilever Resolves Tesco Dispute, Makes Marmite Available Againby
Unilever and Tesco Plc settled a Brexit-inspired pricing dispute that had caused products like Marmite spreads and Dove body wash to get pulled temporarily from the U.K. retailer’s online store.
The “supply situation” with Tesco has been resolved and its brands are fully available, Unilever said in an e-mailed statement after European markets closed Thursday.
The tussle brought home the true cost of the U.K.’s Brexit referendum and laid bare the close ties between Tesco and its third-largest supplier, which was the longtime employer of Tesco Chief Executive Officer Dave Lewis. Unilever is facing heightened sourcing costs from a plunge in the pound since the June vote to leave the European Union, and it told analysts Thursday that it would start imposing price increases in the U.K., which accounts for about 5 percent of its revenue.
Unilever, which separately reported a decline in third-quarter sales volumes Thursday, fell 3.1 percent to 39.47 euros in Amsterdam Thursday. Tesco fell 3 percent to 195.10 pence in London.