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World

Tesco and Unilever resolve "Marmitegate"

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World

Tesco and Unilever resolve "Marmitegate"

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COMING UP:Tesco and Unilever resolve "Marmitegate"

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Transcript

00:00:00
>> Britain's Marmite lovers can heave a big yeasty sigh of relief, Tesco and Unilever announcing, Thursday, that they've settled their price row. Britain's biggest retailer pulled Unilever products from online sales on Tuesday night in a graphic sign of how the Brexit vote could hurt UK shoppers. Unilever had wanted to charge Tesco more for its products because of the plunging pound.
00:00:24
A battle taking place across the industry, but this time between two titans big enough to stand their ground. Along with Marmite, which Brits famously love or loathe, PG Tips Tea Bags, Pot Noodle and other much loved household products were hit prompting #Marmitegate to trend on Twitter among outraged fans.
00:00:46
This time, the spat was settled promptly. Tesco taking a gamble by going public and winning consumer support. But it's unlikely to be the last, with the pound down 19% against the dollar and 16% against the euro since Britons voted to leave the EU in June.>> So what it means is there's a lot of pressure building in the system between the retailers and the suppliers as they try to negotiate who is going to take on that additional cost and how they can operate in such a way that it doesn't hit their profit margins.
00:01:18
>> Marmite's place at the table might once again be assured but Sterling's slump is widely expected to push up grocery prices. And that will leave enough nasty taste in the mouth for British consumers.