You are probably aware of the war that has been raging between Tesco and Unilever that resulted in well-known brands such as Marmite and PG Tips being removed from Tesco’s online shopping service. Now that is really hitting us where it hurts … Marmite and a cuppa!
It began when Unilever attempted to raise their prices by 10% overnight because of what they called “higher costs of imported commodities”. Basically, now that Brexit is on the horizon, it costs more to bring everything into the country and Unilever wanted to pass on their resulting losses to their customers. This action saw a near coup by supermarkets, with other well-known shops threatening to boycott Unilever’s products.
Whilst this particular situation was resolved quickly, it may be just a taste of what is to come. Sterling is unlikely to recover from its current low value and so things will continue to be more expensive. Let’s be honest, establishments such as Tesco will not take that hit without passing on some of it to their customers. This means that next time you pop out for Jammy Dodgers or a tub of ice cream you may find they cost more, or you may just not see them at all.