UK

Stocks of Flora and Persil running low at Tesco amid Unilever price row

Brands including Flora and Persil were running low on Tesco's online store amid a price row. Picture by Katie Collins, Press Association
Brands including Flora and Persil were running low on Tesco's online store amid a price row. Picture by Katie Collins, Press Association Brands including Flora and Persil were running low on Tesco's online store amid a price row. Picture by Katie Collins, Press Association

STOCKS of major household brands including Marmite, Flora and Persil are running low at Tesco following a row between the supermarket and Unilever, one of its main suppliers.

The consumer goods company is believed to have demanded a 10 per cent price rise due to the falling value of the pound against the dollar and euro, and halted deliveries to Tesco when the supermarket refused.

The move is understood to have hit online sales rather than products in store.

Brands affected include Surf washing powder and Comfort fabric conditioner, mayonnaise maker Hellmann's, Pot Noodle and Ben & Jerry's Ice Cream - none of which are available from Tesco's website.

Unilever refused to comment on the dispute, but chief executive Paul Polman warned in June that a vote to leave the EU's single market would increase prices for consumers.

He told Channel 4 that a vote to Leave would mean hikes in import duties on items such as dairy products, leading to price rises that would affect consumers.

A Tesco spokesman said: "We are currently experiencing availability issues on a number of Unilever products. We hope to have this issue resolved soon."

Liberal Democrat leader Tim Farron blamed the Government, saying: "The chaos around Brexit is now hitting our supermarket shelves. This shows the Government don't have a plan or even a clue."

Former chief executives of Tesco, Sainsbury's, Asda, Morrisons, Marks & Spencer and B&Q all warned ahead of the referendum that a drop in the pound - coupled with supply chain disruption - would cause prices to spike.