Mars stopped supplying Tesco supermarket chain Whiskas pet food due to a dispute over the prices.
Both companies are involved in a price dispute that Tesco stated it hoped would be resolved soon.
UK’s largest supermarket stated that it will not pass on unjustifiable price rises from suppliers to its customers.
Mars stated that it was unable to comment on specific commercial relationships and situations.
Supermarkets, like others, are trying to keep customers happy and make profits as the cost of living increases.
This follows a similar US food retailer Kraft Heinz pulling its products from Tesco’s shelves in a dispute over the prices of its products, including soup and condiments.
Tesco said: “We are sorry that some products aren’t available right away, but we have many alternatives and we hope to resolve this issue soon.”
As inflation stands at 9.1%, Mars’ pet products, including Whiskas, Dreamies, and Pedigree are experiencing price increases.
Customers are also experiencing rising energy bills. The average bill is expected to increase to PS3,000 annually in October.
Mars stated that the pet food industry is like many others operating in volatile conditions marked by broad-ranging inflationary pressures. Mars said that they continue to absorb these rising prices as much as they can.
The retailer can decide the price in-store.
As a result, some Tesco stores are experiencing a shortage of Mars pet food on their shelves. There is also a stock shortage on Tesco’s website.
Mars stated that Tesco currently does not stock certain Petcare products.
“There are many reasons our products might be out of stock at certain stores from time-to-time. We are unable to comment on specific commercial relationships.
The dispute between Tesco, Mars and Heinz highlights the difficulties facing supermarkets and suppliers as they deal with large cost increases.
“Suppliers now say: “This is what we can afford to sell the product to you for. Ged Futter, the founder of The Retail Mind, and former buyer at Asda supermarket, says, “If you don’t agree, I am going to cease supplying you.”
He said, “I’ve never seen so many suppliers willing to stop trucks.”
Tesco cannot afford to have shelves that are empty for several months. Customers who see large areas of empty shelves must move elsewhere, Mr Futter said to Today.
Supermarkets often have buyers who make deals with suppliers to supply them with goods. It can be an annual agreement for many items like olive oil or tinned tomatoes.
Under the Groceries Supply Code of Practice both sides have the right to modify terms and conditions. Adam Leyland, editor-in-chief at Grocer magazine, said that while retailers used to demand changes in the past, it is now the suppliers who are demanding that they renegotiate the amount they get paid.
“Suppliers say we need to change quickly. The supermarkets have been slow to change for a while. This trend has been growing since last year, and it is now starting to change.
It’s difficult for both sides. It’s not an easy time.”
