Monday 23 October 2017

Grocery price rise as sterling crash hits us in pocket

Best-selling foods could vanish from Irish supermarket shelves

Unilever, which makes some of the most popular goods sold here, including Knorr soups, Domestos and Pot Noodles, is still in dispute with Irish retailers SuperValu, Centra and Dunnes Stores. REUTERS/Phil Noble
Unilever, which makes some of the most popular goods sold here, including Knorr soups, Domestos and Pot Noodles, is still in dispute with Irish retailers SuperValu, Centra and Dunnes Stores. REUTERS/Phil Noble
Charlie Weston

Charlie Weston

Irish consumers could soon feel the impact of Brexit in their weekly shop.

Popular consumer brands such as Lyons Tea, Hellmann's and Flora could disappear off supermarket shelves or potentially face a price hike.

Retailers are resisting attempts by one of the largest producers of consumer goods to impose double-digit price increases. SuperValu, Centra and Dunnes Stores are holding out as Unilever attempts to raise prices by up to 19pc.

Unilever wanted to negotiate an increase in wholesale prices with supermarkets to compensate for the steep drop in the value of the pound. Sterling has fallen by about 16pc against the euro since the UK's vote to leave the EU. In response to the row, Tesco halted online sales of Unilever goods before the dispute was resolved. It is not known if the resolution will lead to price rises.

However, Unilever, which makes some of the most popular goods sold here, including Knorr soups, Domestos and Pot Noodles, is still in dispute with Irish retailers SuperValu, Centra and Dunnes Stores.

Managing director of SuperValu, Martin Kelleher, told the Irish Independent Unilever supplies 800 products.

Unilever hasn't sought a price increase for all those products, but has halted the supply of all of them.

"We're taking a stance to do what's right by the consumer. This is not a time for inflation," Mr Kelleher said. Musgrave has two to four weeks' supply of Unilever goods, and is expected to stop importing from the supplier this week.

Irish Independent

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