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Business

Tesco pulls beloved UK brands in Brexit row

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Opening sequence

Business

Tesco pulls beloved UK brands in Brexit row

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COMING UP:Tesco pulls beloved UK brands in Brexit row

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Transcript

00:00:00
>> And then when you open up.>> #Marmitegate. Britain's beloved yeast spread an unlikely casualty of the latest Brexit drama. The UK's Twittersphere exploding on Thursday that news Tesco has pulled some of the Brit's favorite brands from its website in a price row caused by the plunging pound.
00:00:19
Pg Tips teabags and Pot Noodle among dozens of products that Unilever makes and wants to charge Tesco more for. The battle between Britain's biggest retailer and one of the world's consumer goods giants is the most vivid sign yet of how the vote to leave the EU could hurt the consumer.
00:00:37
Those stores, as yet, aren't affected. Reuters' Kate Holton has been following the row.>> Since the vote on June the 23rd, we have seen a 19% drop in the pound against the dollar and a 16% drop in the pound against the Euro, so what that means is that for supermarkets importing goods in those currencies, that their costs are going up greatly and they're trying to work out in the moment how to cope with that pressure without passing them onto consumers.
00:01:02
Prime Minister Theresa May's spokeswoman distancing the government from the dispute, saying pricing was purely a commercial decision. Unilever has been trying to raise the prices it charges Britain's supermarkets by about 10%, but the big 4 grocers say some of these products are made in Britain.>> And shouldn't be affected.
00:01:21
And that there was no negotiation. Shares in Tesco and Unilever were down in the morning trade.>> Its not clear yet, whether this is what we should expect as the norm, where many suppliers couldn't say no to Tesco. The someone the size of Unilever can and vice versa really.
00:01:39
It's a clash between two of the biggest giants in the sector.>> With higher grocery prices also believed to be on the horizon in the post referendum slump, UK shoppers will be wondering whether Marmitegate is the shape of things to come.