Tesco pulls Unilever brands like Marmite, Flora and Persil after post-Brexit price row

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Chloe Chaplain13 October 2016

Tesco is running out of major household brands such as Marmite, Flora and Persil after Brexit caused a row between the supermarket and its supplier Unilever.

The supplier is believed to have demanded a 10 per cent price rise due to the falling value of the pound against the dollar and euro after the UK voted to leave the EU.

When the supermarket refused the new prices, Unilever halted deliveries.

Brands affected include Surf washing powder and Comfort fabric conditioner, mayonnaise maker Hellmann's, Pot Noodle and Ben & Jerry's Ice Cream.

Price row: Marmite is one of the much-loved brands to be axed

None of these popular brands are now available from Tesco's website, but the row is not believed to have impacted store goods.

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."

Tim Farron: The Lib-Dem leader blamed the Government for the rise in prices
PA

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."

Tesco last week revealed its half-year profits dropped by more than a quarter to £71 million after being hit by the sector's price war, though it recorded sales growth for a third quarter in a row.

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.

The Tesco stand-off with Unilever came just hours after former Sainsbury's boss Justin King said shoppers should expect price rises after the fall in the value of the pound since the Brexit vote.

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