Business

Saturday 18 November 2017

Ice cream stays off shelf as Unilever seeks more 'lolly'

Unilever is still not shipping ice cream brands such as Magnum to retail group Musgrave, which also controls the Centra chain (Stock picture)
Unilever is still not shipping ice cream brands such as Magnum to retail group Musgrave, which also controls the Centra chain (Stock picture)
John Mulligan

John Mulligan

Relations between Irish retail group Musgrave and global grocery giant Unilever remain frosty, with the international group still not supplying ice cream favourites such as HB and Ben & Jerry's to the Cork company.

Musgrave, which controls the SuperValu chain in Ireland, has been locked in a trade dispute with Unilever after the multinational tried to raise prices on a raft of products it supplies.

Unilever, whose brands include Lyons Tea, Dove, Hellmann's and Lynx, was also embroiled in a dispute with Tesco in the UK over price rises. That threatened to see a large number of popular brands vanish from shelves at Tesco. But the pair later reached an agreement.

Unilever stopped supplying goods to Musgrave two weeks ago over the price row.

Musgrave said that Unilever was trying to raise prices on some of the products it supplied by up to 19pc.

Unilever makes some of the most popular goods sold in this country, including Knorr soups, Flora margarine, Domestos, and Pot Noodles.

It supplies 800 products to Musgrave.

Unilever hadn't sought a price increase for all those products, but did stop supplying all of them.

The Anglo-Dutch company has offered Irish retailers a currency exchange mechanism to compensate them for the price rises it's seeking to introduce.

Unilever has blamed a slump in the value of sterling for having to implement price increases.

And while Unilever has now started supplying almost all its products to Musgrave again, it's still not shipping ice cream brands to the Irish group, which also controls the Centra chain.

That means that favourites such as Magnum, Cornetto and Carte D'Or are still missing from the shelves of SuperValu and Centra outlets all over the country.

Musgrave said that its negotiations with Unilever are continuing, and that the supply of a number of products now subject to any price increase has resumed.

SuperValu is Ireland's biggest grocery retailer, with a 22.4pc share of the multi-billion euro market, according to new figures yesterday by research group Kantar Worldpanel.

Speaking earlier this month, managing director of SuperValu Martin Kelleher told the Irish Independent that the firm was taking a view to protect consumers. "We're taking a stance here to do what's right by the consumer. This is not a time for price inflation in Ireland," he said.

Irish Independent

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