Tesco has been accused of 'profiteering' after it was revealed that a tin of Heinz tomato soup has shot up from 95p to £1.70 in the past six months, despite the retailer's pledge not to pass on 'unjustifiable' cost increases.
The UK's biggest supermarket has been steadily increasing the cost of the family favourite during the cost of living crisis, but this week's jump of 21% nearly doubled the price since the summer, when the same product was selling for 95p. A week ago the cost price was £1.40, according to industry data. The hike comes just six months after Tesco pledged to stand by squeezed consumers and not pass on ‘unjustifiable’ price increases, leading to a bitter dispute with Heinz. Tesco was praised for standing firm against the giant, with Heinz cutting off supply to the supermarket temporarily during the dispute.
Last week, Tesco also announced it will be price-locking thousands of products until Easter of this year, in order to support customers with the cost of living, but the news was cold comfort for soup lovers, faced with spending 75p more for the same can of soup.
Read more: Big brands v own label: Family favourites including baked beans and ketchup put to the test
Jason Tarry, chief executive of Tesco said at the price lock announcement: “As we start the New Year, we know times are tough for many of our customers right now. We hope this extended price lock commitment gives our customers the certainty of knowing that over a thousand household favourites and own brand essentials will stay at the same low price for months to come – helping them budget when they need it most.”
But angry customers have taken to social media to complain to the UK's biggest supermarket chain, accusing it of cashing in on the cost of living crisis.
Rosyposy said on Twitter: "£1.79 for a tin of Heinz Tomato soup in Tesco, we are doomed, I tell you doomed," while @Bonkers808 said: "The price rises are down to Heinz being greedy, and relying on brand-loyalty, as too many people still blindly buy their overpriced products. Both Tesco and Asda do their own soup. It is just as good, and costs 60p."
@GlenWebb74 asked: "Soup tins up from 4 for £4 then to £1.40 a tin to £1.70 a tin within a week in our local store??? Please explain?" and @cumston_gary simply stated: "Single cans of Heinz soup ... don't get me started!"
A senior industry source told the Daily Mail: ‘To raise prices after shouting about holding Heinz to account stinks of double standards. With money tight for so many right now what customers really value is consistency and transparency.’
And Tory MP Craig Mackinlay said: ‘It is becoming increasingly clear that profiteering is at large in our high streets and superstores with 100 per cent price rises across many run-of-the-mill items. I have the benefit of my father, aged 88, a retired retailer, who is a super sleuth on these matters. Obviously capitalism and profits are the currency that makes our economy go round and I wouldn’t want it any other way but some of the price gouging on basic products is even putting what we’ve seen going on with forecourt fuel costs look like small beer. I’d recommend some serious shopping around by consumers and voting with wallets and purses."
The price of a weekly shop is 14.4% higher than a year ago and households are hunting for bargains, with a growing shift to own label products and discount grocers Aldi and Lidl. Tesco’s soup price hikes bring it in line with major rivals Sainsbury’s and Asda, and slightly above Morrisons.
Sales of stores’ own brands surged by 13.3% last month, compared with a 4.7% rise in branded lines. Many retailers also increased their ranges of premium own-label products over Christmas, with sales of those lines growing by 10.2%.
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