The price dispute which has led to a shortage of Heinz beans, ketchup and soup on Tesco shelves is not a "PR exercise", a former supermarket boss has said.
Heinz is understood to have temporarily stopped supplying products like Baked Beans and sauces to Tesco in a row over pricing. Tesco has said it will not pass on "unjustifiable" price increases to customers. Its rivals, including Sainsbury and Morrisons, have raised prices on multi-packs of beans and soup.
Andy Clarke, former chief executive of Asda and now chairman of Newton Europe, has said the Tesco and Heinz pricing dispute is not a PR exercise for the supermarket. Rather, Tesco is choosing not to pass on increased costs fo customers.
Read more: Why Heinz beans, ketchup and soup are not on Tesco shelves
“It’s about pricing. And this is not a new thing. Resellers and manufacturers do disagree at times, and sometimes the impact is that a supplier will stop sending products to those stores,” he told BBC Radio 4’s Today programme.
He added: “This, I would suggest, is about those two businesses getting to an agreement as to what a cost increase looks like, and then Tesco have to decide how much of that they’re going to pass on protect their shoppers.”
A Tesco spokesperson said: “We’re laser-focused on keeping the cost of the weekly shop in check, offering customers great value through our combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices.
“With household budgets under increasing pressure, now more than ever we have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers.
“We’re sorry that this means some products aren’t available right now, but we have plenty of alternatives to choose from and we hope to have this issue resolved soon.”
A Kraft Heinz spokesperson said: “We are working closely with Tesco to resolve the situation as quickly as possible.
“In today’s challenging economic environment – with commodity and production costs rising – many consumers are working within tight budgets. We always look at how we can provide value through price, size and packs so consumers can enjoy the products they love and trust at a price point that works within their budgets, without compromising on quality.
“We are confident of a positive resolution with Tesco.”
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