Heinz Products Coming Back To Tesco After Ending Feud

Heinz has lifted the pause on supplies of key products to Tesco after shelves were left empty across the supermarket chain. 

The likes of ketchup, baked beans and salad cream were in short supply on Tesco shelves after a fallout with US brand Heinz over price increases.

Tesco and Heinz have now reached an agreement, saying in a joint statement: "The full range of Heinz products return to Tesco shelves and online, continuing to offer our customers great value on the nation’s favourite Heinz varieties."

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Last month, Steve Dresser, CEO of Grocery Insight, said cost increases led to a disagreement between Tesco and Heinz.

Taking to Twitter, he wrote: "A few issues with Heinz lines at Tesco… Some out of stock. Believe there are challenges over cost price increases here."

However, a Heinz spokesperson suggested that the two brands were doing everything they could to repair the situation, adding that Heinz and Tesco were working towards a positive resolution.

"In today's challenging economic environment – with commodity and production costs rising – many consumers are working within tight budgets,” the spokesperson said.

"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."

In a statement given to The Grocer, a Tesco spokesperson has said they 'will not pass on unjustifiable price increases to our customers'.

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They added: "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."

Ged Futter, a former Asda executive and currently the director of The Retail Mind, told the BBC at the time: "Heinz are saying if you're not prepared to take it (at that price) we will stop supply.

"There will be a resolution as Tesco can't afford not to have Heinz products and Heinz can't afford to not be in Tesco. It's just a matter of what that resolution looks like."

Topics: Food And Drink, Tesco

Aisha Nozari

@aishanozari