MarmiteGate

DorsetDude

DorsetDude

Spud
Messages
7,018
Name
Keith
Edit My Images
Yes
So Tesco have said to Unilever, supplier of marmite and various other groceries, No we won't accept you putting up your prices by 10% because of Brexit.

Good for them I say. Hope some more supermarkets follow suit. I knew there would be spurious and large price rises coming along after and blamed on brexit (even though we havent yet) in order to rip off the british public.

However I bet you a few weeks down the line tesco et al will announce they have to put up prices due to brexit and because their end customer is us, basically we'll be shafted and not just on unilever products.

Before the usual holier than thou, 'you're not forced to buy it' crew turn up, this is not a rant, just an observation.
 
Just an observation then; "put up prices due to brexit" is a shorthand which actually means something more like "put up the prices due to the fall in the value of the pound caused by uncertainty about future trading conditions that has arisen as a result of the outcome of the brexit vote. Even though we haven't left yet."
 
onomatopoeia said:
Just an observation then; "put up prices due to brexit" is a shorthand which actually means something more like "put up the prices due to the fall in the value of the pound caused by uncertainty about future trading conditions that has arisen as a result of the outcome of the brexit vote. Even though we haven't left yet."
Click to expand...

It's not even shorthand, Brexit wasn't even mentioned, the sharp decrease of the value of the pound was.

One person on my facebook feed has already said it's just "scaremongering by the remain lot". So don't worry, Tesco aren't actually threatening to remove it from their shelves, and it is still available on their website. The story is just made up to look like the value of the pound decreasing might be a bad thing.
 
  • Like
Reactions: BBR
Exchange rates change. Prices change as a result.
I'm not sure what is suprising here and I certainly don't think Tesco should be doing this. When the pound is weak (ignoring the reasons why), the UK pays more for goods which have supply chains abroad.
 
seriousrikk said:
Exchange rates change. Prices change as a result.
I'm not sure what is suprising here and I certainly don't think Tesco should be doing this. When the pound is weak (ignoring the reasons why), the UK pays more for goods which have supply chains abroad.
Click to expand...

They don't usually change so rapidly though.

Tesco have 3 options, get Unilever to absorb the increased cost, absorb it themselves, or pass it on to customers. They're trying to do option 1, to avoid option 3, as judging on recent results, they don't have enough margins for option 2.
 
Short term the only effect will be ,wake up and smell the coffee anyone who is putting off buying a foreign sourced item that's 90% of everything will be thinking better buy now while it's cheap , OH and that does include cameras and lenses and virtually all tech items ,diesel/ petrol is also jumping due to pound v dollar ,times they are a changing
 
Tesco aren't exactly the best company to get on their high hobby horse about prices set by manufacturers, given they were fined £6.5m for their invovlement in dairy price fixing!
 
Pound has been falling for the last 3 months. How long are they expected to absorb the price rises for? 3 months, 6 months, a year? Another huge drop is meaning they price of input goods now is vastly more expensive so they have to charge more. Tesco need to pay their way. Tesco pull this crap with farmers and get away with paying them below cost. It's about time they had a good kicking over how they treat suppliers.
 
Yeah, nasty Tesco, unilever only made 2.7 billion euros profits first half this year, leave them alone!! Boo! They're only trying to make ends meet!


(Yes I know the purpose of a business is to make a profit but they're hardly on their uppers are they.)
 
This was always going to be a possible outcome of the 'brexit' news.

If those who voted out thought nothing was going to change, everything was going to be rosy and 2 years down the line we were going to have billions in the bank......they were very naive.

Things like this will happen, personally I see the cost of fuel creeping up over the next 12 months but I could be wrong.

If the costs to businesses increase, our costs are going to increase.

You can't have your cake and eat it, we wanted to leave the EU and we have to suffer any short term consequences as a result of that decision.

For those who have enough disposable income that having less money is not an issue financially, good for them. There are plenty of people who would struggle if the cost of food/petrol/energy went up.
 
Tesco will cave, just as Sainsbury did v Kellogg in the 80's.
Withdrew all their products from the shelves, for just shy of three weeks until folks voted with their feet.
No one is forcing people to buy Unilever products.
 
noneforit said:
If the costs to businesses increase, our costs are going to increase.
Click to expand...
This is the key line isnt it. the thing is though that quite probably the costs havent increased but they're using the brexit to hang price rises on even though they're not needed. The great British rip-off in other words. They wont be the first doing it and they wont be the last. and when we actually do brexit, they'll be along again to say they need more price rises for exactly the same reason.
The energy companies will be next on the bandwagon I expect.
 
DorsetDude said:
This is the key line isnt it. the thing is though that quite probably the costs havent increased but they're using the brexit to hang price rises on even though they're not needed. The great British rip-off in other words. They wont be the first doing it and they wont be the last. and when we actually do brexit, they'll be along again to say they need more price rises for exactly the same reason.
The energy companies will be next on the bandwagon I expect.
Click to expand...

Do you know their costs haven't increased as a fact though?

I don't know they have as a fact but the discussion is based on what they have said as a company.

If Unilever came out with a 20 page document to explain specifically which costs had increased and they proved it was down to the falling currency rate, would you still say they are lying?
 
Its not a "band wagon". It is a fact. The £ has dive bombed. Right now any goods or services you buy from abroad will cost you more. The primary cause of this is brexit and the uncertainty it has created. On the plus side our exports are cheaper. The question now is will the growth in exports due to lower £ give sufficient benefits to outweigh the inflation a lower £ will cause.
 
You know what I don't even like marmite :ty:
 
  • Like
Reactions: BBR
the black fox said:
You know what I don't even like marmite
Click to expand...
Funny enough, I called into tesco's earlier, I needed stuff for tea, there was loads of Marmite on the shelves, so I bough all thier stock, if anyone wants any it'll be on eBay later at grossly inflated prices (y)
btw Brexit has f*** all to do with it nor does the Euro v Sterling Marmite is made and ingredients sourced wholly in the UK.
The base ingredient is the malt left over from brewing beer. ;)
 
Cobra said:
Funny enough, I called into tesco's earlier, I needed stuff for tea, there was loads of Marmite on the shelves, so I bough all thier stock, if anyone wants any it'll be on eBay later at grossly inflated prices (y)
btw Brexit has f*** all to do with it nor does the Euro v Sterling Marmite is made and ingredients sourced wholly in the UK.
The base ingredient is the malt left over from brewing beer. ;)
Click to expand...

I think people have focussed on Marmite specifically as opposed to why the company are putting up prices.

If they had increased the price of products purely made outside the U.K., there would be little argument to have .

If the companies costs have increased as a result of the pound falling (as they say) then it's only logical to expect them to try and recoup that cost elsewhere. They could take it on the chin and make less profit, sell of some assets, let staff go or what they are trying to do now which is pass the costs onto Tesco.
 
Given how Tesco treat smaller suppliers, "This is the price we will pay you, deal with it" I find it hard to have any sympathy for them.


But the weak pound is going to push up prices unless it recovers soon. We import a lot of basic stuff and it's mostly priced in dollars. Some foodstuffs have margins far too small to absorb this once the hedged positions run out - chicken and pork for example, which despite being mostly homegrown are sensitive to the price of imported soya for the feed.
 
noneforit said:
or what they are trying to do now which is pass the costs onto Tesco.
Click to expand...
It seems this is not a "New thing" just something else to blame on brexit.
This apparently is a "cat and mouse game" played by all supermarket buyers and their suppliers on a regular basis, year in year out.
Or so a large supermarket chain buyer was saying earlier on the radio today.
 
Alastair said:
Given how Tesco treat smaller suppliers, "This is the price we will pay you, deal with it" I find it hard to have any sympathy for them.
Click to expand...


Not only the way they dictate the price but the way they delay paying for the goods for as long as possible, meaning that they have usually sold the goods on (most of the time at a profit) and have sat on the proceeds for a while gathering interest. I rather suspect that the current derisory rate of interest is eating into their profits a bit (from this source) but of course it MUST be Britain's exit from the EU that's to blame...
 
As I saw on faceberk earlier ,don't worry about a shortage of marmite just find a dead fox and boil it up in some tar ,voila marmite supreme .

P.s I,m taking offers on a half used jar of bovril before it goes up in price to
 
Am I the only one ambivalent about Marmite?

:D
 
Nod said:
Not only the way they dictate the price but the way they delay paying for the goods for as long as possible, meaning that they have usually sold the goods on (most of the time at a profit) and have sat on the proceeds for a while gathering interest. I rather suspect that the current derisory rate of interest is eating into their profits a bit (from this source) but of course it MUST be Britain's exit from the EU that's to blame...
Click to expand...
So the plummeting value of the pound has no impact?
 
Cobra said:
Am I the only one ambivalent about Marmite?

:D
Click to expand...
Nope, never really liked it and it's now on my forbidden list anyway.
 
It's not even clear whether Unilever are putting up prices across the board to take account of the fallImg £ or if it's just on foreign produced goods and led to a standoff over all products.

It's a bit like the presidential race with both sides being untrustworthy.
 
Seems someone caved.
 
Phil V said:
It's not even clear whether Unilever are putting up prices across the board to take account of the fallImg £ or if it's just on foreign produced goods and led to a standoff over all products.
Click to expand...
According to R4 it's across a broad sweep of products including products manufactured in the UK. But it's very difficult to define what a "made in the UK" product is with multinational supply chains.

I've not looked to see if these are the more energy intensive products to manufacture. And it's unclear when the contract was last renegotiated.
 
Phil V said:
It's not even clear whether Unilever are putting up prices across the board to take account of the fallImg £ or if it's just on foreign produced goods and led to a standoff over all products.

It's a bit like the presidential race with both sides being untrustworthy.
Click to expand...

That's my point, people focus on Marmite because it's a UK made product and it gives one side some ammunition to argue against the other side blaming brexit.

I suspect Unilever's costs have gone up in general and Marmite is just one example of an 'across the board' increase in prices.

It may happen every year between them but assuming 10% is an accurate figure then it seems likely the falling pound is at least somewhat to blame.
 
crofter said:
I like Marmite,in fact it's the only product from Unilever mentioned so far on the news I would buy,PG tips is crap,Pot noodle,does anybody buy that s*** ?.
Click to expand...

Have a list:

FOOD
Bertolli
Flora
Hellmann’s
Knorr
Magnum
Ben & Jerry’s
Carte D’Or
Cornetto
I Can’t Believe It’s Not Butter
Maille
Marmite
Solero
Stork
Vienetta
Wall’s
Bovril
Colman’s
Elmlea
Pot Noodle

DRINK
Lipton
Lyons
PG Tips

COSMETICS
Dove
Lynx
Sure
Brut
Tresemme
Timotei
VO5
Vaseline
Pond’s
Impulse
Radox
Simple
St Ives

HOUSEHOLD
Comfort
Domestos
Persil
Surf
Cif
 
crofter said:
I like Marmite
Click to expand...
Actually so do I, ( on thick buttered toast especially) I was just giving a third option to the love it, or hate it comments :D
 
You must log in or register to reply here.
Back
Top