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Jobs & Education1 min ago
Is Unilever Biting Off The Hand That Feeds Them?
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There has always been a precarious relationship between supplier and supermarkets. The supermarkets have slashed profit on a huge amount of products and in the process squeezed the producers and suppliers margins in the process.
The £ having lost a lot of ground has hit hard on import costs and even a big name like Unilever can only take so much. However there is also talk of Unilever putting prices up even of products produced in this country so 50/50.
The £ having lost a lot of ground has hit hard on import costs and even a big name like Unilever can only take so much. However there is also talk of Unilever putting prices up even of products produced in this country so 50/50.
No.
Obviously the pound going tits up over Brexit fears means the manufacturer and the seller will have to both take a hit. If Unilever's costs have gone up then they need to pass on those costs. They are a business, not a charity. The supermarket can pass on the costs to customers to decide, but for some reason will not do that. I suspect there is more to this than the Brexit costs, it is about redefining their relationship - supermarkets now like to dictate rather than be dictated to.
There will be people who still want Marmite, so they will go to a supermarket that sells it, so Tesco will lose out.
Obviously the pound going tits up over Brexit fears means the manufacturer and the seller will have to both take a hit. If Unilever's costs have gone up then they need to pass on those costs. They are a business, not a charity. The supermarket can pass on the costs to customers to decide, but for some reason will not do that. I suspect there is more to this than the Brexit costs, it is about redefining their relationship - supermarkets now like to dictate rather than be dictated to.
There will be people who still want Marmite, so they will go to a supermarket that sells it, so Tesco will lose out.
I don't think either party relies on the other, but both will hurt at a split.
It's a question of who blinks first. Both have arguments in their favour and against. One is using the exchange rate as an excuse to up prices across the board, the other is bullying a supplier telling them what they have to charge or get no access in the store at all. If folk played fair instead of pushing for maximum benefit for themselves and blow everyone else, it'd run a lot more smoothly.
It's a question of who blinks first. Both have arguments in their favour and against. One is using the exchange rate as an excuse to up prices across the board, the other is bullying a supplier telling them what they have to charge or get no access in the store at all. If folk played fair instead of pushing for maximum benefit for themselves and blow everyone else, it'd run a lot more smoothly.
People want branded products which is why the supermarkets are full of them. Own brands are considered inferior, which is why they have to sell them for less.
As I said, this is about redefining their business relationship. Tesco believe they are all powerful and can dictate what they want to pay. That may work on weak diary farmers and vegetable growers, but a multi-million pound corporation will not just roll over and submit.
As I said, this is about redefining their business relationship. Tesco believe they are all powerful and can dictate what they want to pay. That may work on weak diary farmers and vegetable growers, but a multi-million pound corporation will not just roll over and submit.
/// There will be people who still want Marmite, so they will go to a supermarket that sells it, so Tesco will lose out. ///
Surely they are only a very small minority, so if Tesco were to lose a few Marmite loving customers, I don't think it would make a huge difference to the thousands of other customers that their supermarkets attract.
Surely they are only a very small minority, so if Tesco were to lose a few Marmite loving customers, I don't think it would make a huge difference to the thousands of other customers that their supermarkets attract.
Gromit
/// People want branded products which is why the supermarkets are full of them. Own brands are considered inferior, which is why they have to sell them for less. ///
Only the gullible ones, the more discerning shopper knows that most own brand products are actually made by the same producers of the branded goods.
Or do you think that Tesco, Asda, Morrisons etc, have their own factories producing their own branded goods?
/// People want branded products which is why the supermarkets are full of them. Own brands are considered inferior, which is why they have to sell them for less. ///
Only the gullible ones, the more discerning shopper knows that most own brand products are actually made by the same producers of the branded goods.
Or do you think that Tesco, Asda, Morrisons etc, have their own factories producing their own branded goods?
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