Love it or hate it - are price increases inevitable?

By : Administrator
Published 14th October 2016 |
Read latest comment - 14th October 2016

So Unilever, Tesco's and Asda have ended the recent food price dispute and done some hasty behind the scenes negotiations to keep our Marmite and Mayonnaise on the shelves.

But with Unilver wanting to increase it's prices by 10% across its product range, are big price increases only a matter of time?

Supermarkets are forever locked into a price war with each other, and now they are having to do battle with suppliers. But if products made in Europe or overseas are now more expensive to import due to drop in sterling, then surely prices will have to increase at some point?

Or will our buying habits change and we'll forget previous brand loyalty in favour of cheaper home grown or generated alternatives? 

Could this be an opportunity and welcome boost for the UK farming and manufacturing industry? Or is the reality we still need to import the majority of raw materials, which will still reflect in higher prices? 


Steve Richardson
Gaffer of My Local Services
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Comments

What i don't understand in this whole debate is that Marmite is a by product of the beer industry, here in the good ol' UK.

Why is a UK produced product subject to price change due to the financial markets? Are we expected to subsidise our soon to be European neighbours product when the price differs in the EU Economy?


Clive

What i don't understand in this whole debate is that Marmite is a by product of the beer industry, here in the good ol' UK.

Why is a UK produced product subject to price change due to the financial markets? Are we expected to subsidise our soon to be European neighbours product when the price differs in the EU Economy?”
 

Clive

It's not just the product but the container and label.  Heard a news report the other day when the same question was asked.  If UK cannot compete on packaging costs, then companies will look at other, cheaper, markets.  

I've just been "done" in Asda.  I like their own brand granola cereal as it has a reasonable fat and sugar content .  First, they hadn't got my usual flavour.  Then I noticed the bag had shrunk.  This was confirmed when I got home and found the open bag was 750g but the new purchase was 500g and still £2!  Some of the supermarkets can't be trusted to offer value on their own brand.  I do like Aldi and Lidl for fruit and veg quality, but some of their other products leave a lot to be desired (my personal taste rather than the actual quality).

I play Asda at their own game.   If they raise a price then I won't buy the product until it's reduced again.  I'm not going to trek from one supermarket to another, life's too short, but I don't expect to be conned.  Methinks Brexit will be used as the excuse for lots of things.....


JuliaP

The price of goods will rise and fall regardless of us leaving the EU.... Unilever supply a whole range of retailers not just Tesco, so the same 10% mark up would have also applied to all of these other outlets not just Tesco.... with the influx of Aldi and Lidl on the high street, consumers will just head to these outlets where the goods predominantly come from the EU..... No 10% rises at these places, so you have to ask why not..... probably just to do with marketing on behalf of Unilever who managed to get half their products listed in newspapers yesterday. Makes no difference to me, have never had marmite in the house.... 


Thanks,
Barney

You also have to remember when all these countries went over to the Euro , everybody was complaining the shops all put up their prices , so it doesn't really matter ...Although the Pound will bounce back but then I expect teh prices to change ,but of course they wont...

It was the same with petrol in South Africa they would put the prices of fuel up when it suited them but never brought it down even though the wholesale price dropped ...Over there everyone has the same price set by the government


Thanks,
Andy-C | Pewter World

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