Heinz products off Tesco shelves after pricing dispute

Kraft Heinz, the company behind some of the UK’s most popular food brands, has stopped supplying Tesco with most of its products in a dispute over pricing.

“We’re sorry that this means some products aren’t available right now,” a Tesco spokesperson said.

A range of Heinz items are affected according to the Grocer magazine, which first reported the falling-out.

Baked beans, ketchup and tomato soup are among the products understood to be affected.

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 such as Tesco are striving to keep prices low for customers facing a cost-of-living squeeze and shopping more carefully.

Tesco has pushed back, suggesting there were “plenty of alternatives to choose from”. But the grocer won’t want to lose Heinz products from its shelves for long, given that they are staples in many UK households.

“We hope to have this issue resolved soon,” the Tesco spokesperson said.

Kraft Heinz said it was “working closely with Tesco to resolve the situation as quickly as possible” but referred to “today’s challenging economic environment – with commodity and production costs rising”.

A Kraft Heinz spokesman said the firm always looked at how it could “provide value through price, size and packs…. at a price point that works within their budgets”.

“We are confident of a positive resolution with Tesco,” the spokesperson added.

A Tesco spokesperson said the supermarket giant was “laser-focused on keeping the cost of the weekly shop in check”.

“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.”

Not all Kraft Heinz products are affected.

Earlier this year Colgate toothpaste disappeared from Tesco’s shelves after a similar fall-out with US consumer products giant Colgate-Palmolive.