Tesco pulled items such as Marmite and Pot Noodle from its website after makers Unilever ‘demanded 10 PER CENT price rise due to BREXIT’
The billion-pound consumer business - which manufactures food across the globe - has tried to send prices soaring as the pound plummets
TESCO has pulled popular items such as Marmite and Pot Noodles from its website because billion-pound food company Unilever demanded a 10 PER CENT price rise due to Brexit.
The Dutch-British global firm - worth £112.7 billion - tried to send prices rocketing as Brits face economic uncertainty as the Pound plummets - despite many of the products being made in the UK.
When Tesco refused to pay the extra 10 per cent, Unilever, who recorded a £40,860,420.12 annual return last year, reportedly stopped deliveries to the supermarket giant.
Their finance chief today said the prices of up to 42 popular products will rise as a result of the Pound falling.
However, many of the products are made and sourced in the UK, as The Sun Online revealed today.
Speaking as the group's third quarter results were released, chief financial officer Graeme Pitkethly said: "In the UK, which accounts for 5 per cent of turnover, prices should start to increase to cover the cost of imported goods due to weaker sterling."
Remain-loving Unilever bosses threatened before the referendum to hike prices if a Brexit vote won.
He said the row will be "resolved very quickly" and said other customers have agreed to the hike in prices - but this could come out of hard-working Brits' pockets when supermarkets inflates prices.
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However, a Tesco source has told The Sun the supermarket giant is unwilling to pay the extra 10 per cent.
A well-informed retail source told The Guardian newspaper: “Unilever is using Brexit as an excuse to raise prices, even on products that are made in the UK.”
All of the world's Marmite is produced in one UK factory in the West Midlands - yet Unilever is still reportedly planning to raise prices.
The stand-off has left the supermarket facing a shortage of household brands, including Hellmanns mayonnaise, Marmite Ben & Jerry's ice cream, Surf washing powder, Knorr stock cubes and Pot Noodles.
The move is understood to have hit online sales rather than products in store. Shoppers trying to buy items from Tesco's website on Wednesday were met with the message "Sorry, this product is currently not available".
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 a vote to Leave would mean hikes in import duties on items such as dairy products, leading to price rises that would affect consumers.
The fatcat appears to now be following through on his Remainer threat.
Polman came under fire in 2014 when it was revealed he received an annual wage of £6.9million - which included a base salary of £865,000.
Citing the example of Wall's Magnum ice cream, Polman warned about trade restrictions, saying: "Undoubtedly if the UK were to leave, the conditions will not be as good as if they stay in."
Unilever has demanded steep price increases to offset the higher cost of imported goods, which are priced in euros and dollars.
But Tesco has suggested it will fight the rises - removing Unilever from its website and warning that some items could disappear from shelves if the row drags on.
Other supermarkets have indicated they may do the same.
MPs have slammed Unilever for extorting Brit shoppers and warned the move could damage its brand.
Conservative MP Sir Gerald Howarth told the Daily Telegraph: "I think it will be very damaging to the reputation of Unilever if they seek to use the fall in the Pound to exploit the consumer.
"Clearly products which are not dependent upon imports into the United Kingdom will not be affected by the fall in the value of the Pound.
"Consumers will switch to other products where companies aren't seeking to fleece the consumer."
Tesco boss Dave Lewis worked at Unilever as president of global personal care until leaving his role to become CEO of Tesco in September 2014 and is now embroiled in the bitter war with his former employee.
Unilever has decided to hike the prices despite having record sales for the first half of this year - but their stocks were today down 2.25 per cent.
The pound has fallen in value by around 17 per cent since the UK voted to leave the EU.
Tesco hasn't confirmed the sudden removal of Unilever goods is down to the row, but chief Dave Lewis signalled last week that he would fight against suppliers who try to use the plunging pound to justify price hikes.They have instead said they are looking into why the products are suddenly unavailable.
The bizarre stock plummet led a number of Twitter users to suggest the two big companies may have had a fall-out.
Consumer journalist Harry Wallop asked: "Has Tesco had row with Unilever? Marmite, Colman's and Hellmann's - Unilever's start products - all unavailable on website. Delisted?"
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He then added: "Tesco has clearly had major bust-up with Unilever. Knorr and Ben & Jerry's - 2 more Unilever products - also not available at Tesco."
Pictures are showing of the household favourite items on the supermarket's website, but underneath a message reads: "Sorry, this product is currently not available."
Colmans sauces and Comfort products were also among those unavailable online.
All of the products are still available on other supermarket websites, including Sainsburys and Ocado.
Wallop suggests the lack of stock has a "whiff of Tesco row with Premier Foods in 2011";.
Tesco responded to one of Wallop's tweets saying: "We're currently experiencing availability issues on a number of Unilever products.
The company tried to pass on a 14 per cent increase in costs to Tesco - equalling about £150million.
Tesco responded by refusing to stock their produce - leading to a near-30 per cent fall in Loyd Grossman sauces and a 14.6 per cent dip in Branston Pickle sales.
A Tesco spokesperson said: "We are currently experiencing availability issues on a number of Unilever products. We always work to ensure customers get the best possible prices and we hope to have this issue resolved soon."
A Unilever spokesperson refused to comment.
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