Marmitegate

[Baxenden Bank]

Certainly smacks of attempted profiteering by Uniliver. Mind you Asda tried it on a few years ago with their [own budget brand] Smart price salted peamuts. They upped the price from 48p to 60p that's a 25% price hike, then a fortnight latter they upped the price again by 10p to 70p making it near as makes no differance a 50% price hike in 3 weeks.Needless to say in the 4th week there was an almost 100% drop in sales. Thus somewhat hurriedly the price dropped back to 48p.

Supermarket pricing is daft anyway. Take Persil, one week it's £11.00, next week £5.50, the week after back to £11.00, repeat forever. What does it matter if Unilever have moved the price slightly given that kind of variation. I just stock up when it is at a price that I am happy with and never buy at the artificially high price. 90 washes worth of Persil in the spareroom, fridge full of Flora. Sit back and watch both global corporates destroy themselves.

Tesco will be the ones to lose out. If I go out and do my shopping, and the shelf is empty of a Unilever product, then I will shop somewhere else. In doing so I may find that the alternative retailer is better in some way and never go back to Tesco. That is precisely how I found out that the high street discounters were so much cheaper e.g. B & M, Home Bargains, Wilkinsons.

The idea that Tesco is somehow making a stand for the consumer (rather than their corporate good) is laughable.
--- old post above --- --- new post below ---

I have a jar = six months supply

I have a jar, to get rid of guests outstaying their welcome.
--- old post above --- --- new post below ---

Tesco has had to pull several well-known brands from its stores after its main supplier, the Dutch firm Unilever, refused to continue to supply Tesco unless it raised its prices by 10%. Aldi is predicted to follow suit.

Surely Unilever don't dictate the price that Tesco sell at? Rather they offer a wholesale price that they are prepared to supply at. Tesco can buy at that price or not. The price Tesco charge to the customer is entirely up to Tesco.

 

[Groningen]

First we had traingate; now marmitgate. Excited to see how many gates will come the coming days/months/years!

 

[GatwickDepress]

Surely Unilever don't dictate the price that Tesco sell at? Rather they offer a wholesale price that they are prepared to supply at. Tesco can buy at that price or not. The price Tesco charge to the customer is entirely up to Tesco.

It's a little more complicated than that. Same with planograms - you'd think they'd be entirely based on customer preference, but suppliers have a say in them as well; at least at a corporate level.

 

[EM2]

All over - http://www.bbc.co.uk/news/business-37650234

Issues surrounding the supply of leading brands including Marmite to Tesco have now been resolved, Unilever has said.
The supermarket giant and the UK's largest food manufacturer had been locked in a battle over wholesale prices.
Unilever wanted to raise its UK prices to compensate for the steep drop in the value of the pound.
Brands including Hellmann's Mayonnaise had been removed from Tesco's website.
"Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved," Unilever said.
"We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available. For all those that missed us, thanks for all the love."
Supermarkets frequently renegotiate supplier prices, but it is unusual for a dispute to be made public.
Sterling has dropped by about 16% against the euro and 18% against the dollar since the UK's vote in June to leave the EU.
The sharp drop has left suppliers and retailers dealing with the effects of higher bills for imported goods.
Supermarket profit margins have already been squeezed by a long-running price war as the big established retailers try to stem the loss of market share to discounters such as Lidl and Aldi.

 

[SS4]

First we had traingate; now marmitgate. Excited to see how many gates will come the coming days/months/years!

I'm waiting for a gate to hit someone so we can have gategate

 

[Baxenden Bank]

Storm in a (PG) tea-cup?

On the subject of store layouts (Planograms). I heard a spokesman once say something along the lines of 'we sell 10 times as much of X when it is placed at the end of an aisle, rather than down the aisle'. Surely all that does is oversell that week, then reduce sales for the following few weeks. For example, when I bought my Persil (end of aisle, promotional price) it didn't mean that I used more, rather I simply brought forward my purchase and it will be that much longer before I buy another box. Good for Unilever and Tesco cash-flow but not for regular levels of production?

 

[AlterEgo]

I got an iPad notification from the BBC about this! Like it's major news, like a head of state dying or something.

 

[yorksrob]

This thread rather reminds me of this

https://www.youtube.com/watch?v=vB9JgxhXW5w

 

[Blindtraveler]

First off I totally agree with Darlo Ritch on pot noodles!

Looking through that list I can safely say that other than the odd vianeta I dont buy any of the brands listed as a general rule, mainly based on price. I much prefer cheeper brands be they supermarket own or 1 of the other economy brand offerings and Iv noticed more and more lately that big names are iether hiking the price or reducing the quantity for the money making my shoppping habbit even more attractive. Further more its not unknown for particularly supermarket own stuff to be very high quality indeed!


Whilst I note its all been resolved it did come to my attentionearlier that a Links giftset I had in my amazon list jumped in price, no doubt as a reaction to tesco no longer selling it on their site. I wonder if its gone back down now?

Someone mentioned how theyd abandened tesco due to costs being to high and I'll admit to doing the same but this has made me wonder if they are trying to refocus on being am outlet for big brands at reasonable cost or if some other factor is at play here.

 

[TheKnightWho]

Storm in a (PG) tea-cup?

On the subject of store layouts (Planograms). I heard a spokesman once say something along the lines of 'we sell 10 times as much of X when it is placed at the end of an aisle, rather than down the aisle'. Surely all that does is oversell that week, then reduce sales for the following few weeks. For example, when I bought my Persil (end of aisle, promotional price) it didn't mean that I used more, rather I simply brought forward my purchase and it will be that much longer before I buy another box. Good for Unilever and Tesco cash-flow but not for regular levels of production?

Don't make the mistake of thinking that your usage of a product is the same as everyone else's, though.

 

[Baxenden Bank]

Don't make the mistake of thinking that your usage of a product is the same as everyone else's, though.

I gave up trying to understand the 'general public', and their spending habits, some time ago. Money to burn it would appear, wish I could afford to be so lax. Can't blame a company for taking money off them though.

 

[Domh245]

Well, it looks like this has been settled.

Issues surrounding the supply of leading brands including Marmite to Tesco have now been resolved, Unilever has said.
The supermarket giant and the UK's largest food manufacturer had been locked in a battle over wholesale prices.
Unilever had wanted to raise its prices by about 10% to compensate for the steep drop in the value of the pound.
But Unilever had to give some ground, the BBC understands.

 

[Clip]

I gave up trying to understand the 'general public', and their spending habits, some time ago. Money to burn it would appear, wish I could afford to be so lax. Can't blame a company for taking money off them though.

A family of 5 is going to use mroe persil than a family of 1 or two though I dont think its a case of more money to burn just its a necessity and they wouldve bought loads at the full price too

 

[yorkie]

Would real food not be a better option? Even as a student i didn't eat pot noodles. They ming!

It is possible to have an edible pot noodle, however you need a triplicator.

I tell you one thing: I've been to a parallel universe, I've seen time running backwards, I've played pool with planets, and I've given birth to twins, but I never thought in my entire life I'd taste an edible Pot Noodle.

richw, buy some extra salt then.

I think you misunderstood what richw was saying.

I'm concerned with Pot Noodle, I live off the stuff, best 50p meal.
I use Asda though as Tesco is expensive.

I don't think it would be healthy to have stuff like that too often. As a one-off it would be OK every now and then.

 

[DarloRich]

I dont mind a pot noodle every now and then - fills a gap quickly. Then again the mug shots from Aldi do the same job and theyre even cheaper.

aye - mug shots are the way forward. Much higher quality

 

[Harbornite]

First we had traingate; now marmitgate. Excited to see how many gates will come the coming days/months/years!

Well technically speaking, first we had Watergate but that wasn't to do with Severn Trent, it was a tad more serious.

 

[Busaholic]

I'm waiting for a gate to hit someone so we can have gategate

Harrison Ford - it cost the production company a million plus!

 

[Xenophon PCDGS]

I'm waiting for a gate to hit someone so we can have gategate

Noting we are on RailUKforums, using my knowledge of closed railway stations, on the Driffield to Selby line, there were two stations next to each other....
Menthorpe Gate
Duffield Gate

 

[jon0844]

Surely Unilever don't dictate the price that Tesco sell at? Rather they offer a wholesale price that they are prepared to supply at. Tesco can buy at that price or not. The price Tesco charge to the customer is entirely up to Tesco.

Doesn't Tesco require suppliers to do a certain amount of promotions per year, which the supplier funds rather than Tesco?

Not sure the finer details, but I know Tesco did that when we sold magazines. On our first go, we had to pay more to Tesco to put our magazine on the shelves of selected stores than we got back. We were out of pocket, but if sales were good, then they'd let us back on more favourable terms.

We did it once and then they wanted more money again, so we told them to shove it. Even WH Smith wasn't that greedy!

I know many magazines, even from huge publishers, make no money through supermarkets selling magazines. They pretty much sell at cost in order to keep circulations up, which saves their advertising.

I have heard many stories about suppliers having to fund all sorts of things. Clearly Unilever wanted more money, but if Tesco had agreed to pay more, it would have pushed up the retail price. It clearly didn't want to charge more, hence the stalemate. It absolutely wasn't for the good of customers, although I guess Tesco being selfish did indirectly benefit customers this time.

 

[Tetchytyke]

Unilever trying it on in Ireland.

https://www.rte.ie/news/business/2016/1013/823654-tesco-unilever-row/

Unilever acting the maggot here.

Well durr.

The food business isn't making them enough money, they want to sell it, so they tried a bit of price-gouging. It didn't work with Tesco (who I'm sure would still have increased prices to match their competitors) but presumably did work with the other major supermarket chains...

 

[DarloRich]

Crisis over!

The big wigs have got around the table and yanked the irons out of the fire! Convoys of brown yeasty goodness are at this moment rolling out of depots to break the Tescoain blockade!

 

[SpacePhoenix]

Crisis over!

The big wigs have got around the table and yanked the irons out of the fire! Convoys of brown yeasty goodness are at this moment rolling out of depots to break the Tescoain blockade!

I think the yeasty stuff is actually Vegimite, afaik Marmite is beefy

 

[Tetchytyke]

I think the yeasty stuff is actually Vegimite, afaik Marmite is beefy

No, that's Bovril.

Marmite is yeast extract, as is Vegemite.

 

[DarloRich]

mmmmmmmmmmm Bovril

Marmite is certainly yeasty - it is suitable for Veggies & Vegans

 

[Calthrop]

Well technically speaking, first we had Watergate but that wasn't to do with Severn Trent, it was a tad more serious.

The Torrington -- Halwill branch had a halt actually called Watergate. A pity that this line lost its passenger service in 1965, some years before the notorious American goings-on -- if the service had lasted until the time of the scandal, some chuckles would have been had by train crews and the line's few passengers. One envisages current-affairs-conscious pranksters stealing the halt's name sign -- rather as with the place in Austria beginning with "F"...

 

[Xenophon PCDGS]

No, that's Bovril.

Marmite is yeast extract, as is Vegemite.

Casting my mind back many years, the Australian group "Men at Work" referred to a "a Vegemite sandwich" in a verse of the song "Down Under". Is Vegemite still produced in Australia?

 

[SpacePhoenix]

Casting my mind back many years, the Australian group "Men at Work" referred to a "a Vegemite sandwich" in a verse of the song "Down Under". Is Vegemite still produced in Australia?

Don't know if it's still made in Austrlia or another country now but there's a few shops that sell it in the UK

 

[richw]

Casting my mind back many years, the Australian group "Men at Work" referred to a "a Vegemite sandwich" in a verse of the song "Down Under". Is Vegemite still produced in Australia?

Don't know if it's still made in Austrlia or another country now but there's a few shops that sell it in the UK

Current producer is Mondelez international, known to most as Kraft Foods.
Its produced in their Port Melbourne Factory.

 

[Busaholic]

Doesn't Tesco require suppliers to do a certain amount of promotions per year, which the supplier funds rather than Tesco?

Not sure the finer details, but I know Tesco did that when we sold magazines. On our first go, we had to pay more to Tesco to put our magazine on the shelves of selected stores than we got back. We were out of pocket, but if sales were good, then they'd let us back on more favourable terms.

We did it once and then they wanted more money again, so we told them to shove it. Even WH Smith wasn't that greedy!

I know many magazines, even from huge publishers, make no money through supermarkets selling magazines. They pretty much sell at cost in order to keep circulations up, which saves their advertising.

I have heard many stories about suppliers having to fund all sorts of things. Clearly Unilever wanted more money, but if Tesco had agreed to pay more, it would have pushed up the retail price. It clearly didn't want to charge more, hence the stalemate. It absolutely wasn't for the good of customers, although I guess Tesco being selfish did indirectly benefit customers this time.

Tesco are not alone among the supermarkets in requiring suppliers to fund these promotions: I believe all the 'Top Five' do, as Waterstone's certainly used to do under previous management, and no doubt large DIY stores etc.

I can give an example of how this works with one product, Covent Garden Soup Company's Leek and Potato soup. Tesco's 'regular' price on this is £2.34, which usually applies for a fortnight, then for the next two weeks it sells for 'half price' i.e. £1.17. Sainsbury, by contrast, sells it for £2 'regular' and discounts to £1.50 on 'special offer'. I'd love to know how much each supermarket pays per carton, and whether this varies during times of promotion. Other supermarkets, by the way, occasionally discount it to a mere £1.

 

[306024]

First we had traingate; now marmitgate. Excited to see how many gates will come the coming days/months/years!

Last month the gate at Forest Gate station was closed, apparently due to station overcrowding as reported in the local paper, the Newham Recorder. Angry scenes resulted.

Forest Gate Gate Gate

Ironically the booking hall is currently closed while new gates are installed for Crossrail.

(You did ask.....)