Tesco yesterday released a full list of popular products that are now 'banned' from stores because of a price row. A major supplier has pulled all of its products from the supermarket's shelves.
Tesco said it would not pass on "unjustifiable price increases" to its customers. Now Heinz has halted supply to all of its stores.
It is understood that Heinz has paused supply to the UK’s biggest supermarket chain, leading to gaps on shelves across the brand’s products. Tesco’s website shows that products including Beanz 4x415g, Sticky Barbecue Sauce 500g, Salad Cream 605g, Baked Beans & Pork Sausages 200g, Beanz No Added Sugar 4x415g Snap Pots 4x200g, Beanz No Added Sugar 200g and Chicken Noodle Soup 400g are unavailable.
READ MORE: Tesco, ASDA, Sainsbury's and Morrisons beans ranked against Heinz and one 35p tin came out top
Shoppers had a strong reaction to the news on Facebook. While some praised Heinz, others suggested switching to other supermarket brands like Aldi and Lidl.
Alex Boyd said: "I went to buy beans at the weekend and they were £1.70 a tin. Definitely won’t buy them at this price. I don’t know how items are going up by a pound somebody is lining their pockets somewhere."
Grahame Kelly slammed: "One of the reasons heinz baked beens (sic) and similar products r putting up the prices so high it because of people like us kept saying beens (sic) on toast was a cheap meal so they think they can capitalize on our stupidity if they think we will keep buying them."
Laura Shephard said: "I stopped buying Heinz a long time ago if you shop about and try different brands then you will find a cheaper alternative! Tesco's own tomato soup is lovely. I wouldn't pay £1.40 for a tin of soup."
Catherine Crosby said: "Aldi beans for the win! And they've dumped the plastic off the 4 pack but give you the discount if you buy them in 4's. Heinz literally pale in comparison." Susan Dutton Moseley agreed: "Aldi and lidl beans are lovely."
Stuart Timms wrote: "Loved heinz tomato soup but found aldis just as good half the price." Tony King commented: "Nah sod that. I’m Aldi all the way. I’m a convert. Big brands can go do one. Aldi’s own brand food is almost indistinguishable from the overpriced brands."
Karen Neil added: "The supermarket baked beans are better anyway." Annette Wilson said: "Aldi baked beans are way more tasty and less salty, make them even better by adding chorizo or sweet chilly sauce, yum yum."
A Tesco spokesman said the retailer was “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”.
He added: “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, including Branston Baked Beans and our own-brand ranges, and we hope to have this issue resolved soon.”
A Kraft Heinz spokesman suggested price had been at the heart of the issue, citing “today's challenging economic environment – with commodity and production costs rising – many consumers are working within tight budgets".
Their statement continued: “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." Kraft Heinz said it was “working closely with Tesco to resolve the situation as quickly as possible” and was “confident in a positive resolution”.
Research by The Grocer trade publication, which first reported the dispute, said data showed prices had surged across the entire Heinz range over recent weeks. The price of a 4x400g pack of Heinz Cream of Tomato Soup, for instance, had risen from £2.50 to £3.50 in Sainsbury’s, while a 4x200g pack of Beanz Snap Pots had risen from £2.50 to £2.99 in Morrisons.
A single 415g can of Beanz in Asda has risen from 90p to £1.20, according retail researchers Assosia. In recent months food manufacturers have reported rising costs, including for energy and commodities, with some warning they would need to raise the prices they charge to retailers.
However, supermarkets continue to battle each other to win customers, who are reining in their spending to cope with the cost-of-living crisis. Rising food prices have helped push inflation to a 40-year high and shoppers are already cutting back on the amount of food they buy, according to a survey for the Office for National Statistics.
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