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Business

UK's Walkers Crisps feel Brexit crunch

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Opening sequence

Business

UK's Walkers Crisps feel Brexit crunch

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COMING UP:UK's Walkers Crisps feel Brexit crunch

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00:00:00
>> First Marmite, now Walker's Crisps. A bag of Britain's favorite potato chips is to go up in price by about ten percent, thanks to the Brexit referendum. Walker's saying over the weekend that the vote to leave the EU had hiked it's costs. Reuters Paul Sandal has been following this story in London.
00:00:18
>> Walkers which is owned by a US company, Pepsi Co has blamed the price rise on the fall in the value of the pound after Brexit. Pushing up costs of things like oils, the oils they use to cook the crisps, the packaging materials, which obviously made from oil ultimately, and flavorings, and so on.
00:00:41
The potatoes actually are grown in Britain.>> It's not just crisp lovers feeling the crunch, Birdseye, who's fish fingers are a staple for many British kids, has also announced a price hike. It's first since 2012. And last month, Unilever crossed swords with UK retail giant Tesco when it tried to charge more for some iconic brands, such as Marmite spread and Pop Noodle.
00:01:05
Tesco won.>> The supermarket's been very aggressive in forcing the manufacturers to keep prices low, as low as possible, and Tesco has had very big public spats with Unilever. But, Morrison's, another major chain in Britain, has already put up the price of Marmite's by more than 13%. So, shoppers are starting to see this in their baskets, and, obviously that's going to come as quite a shock after years of falling prices.
00:01:32
>> It's up to retailers whether to pass on price hikes to their customers. But with inflation widely predicted, someone will have to swallow the growing costs.