Unilever profiteering (1 Viewer)

[Robert Clark]

Not all of them which is what Tesco's point is.

These are just 2 examples of Unilever products made in the UK using UK raw materials.
Marmite is made from the waste product of the beer brewing industry.
Walls ice creams are made using dairy products from this country.

Tesco's point is that an across the board 10% hike in prices is just gouging. If they were to raise prices on products who price is affected by the currency devaluation and only to the value of the change they would have no problems with it.

And who pays for Unilever staff wage rises?
Rates rises?
Increased pension contributions?
Etc etc?
I'm not pro Unilever - as a business owner and employer I'm just aware that prices must rise to meet increasd costs, wherever they come from.

 

[Lot lover]

If we all start buying british they will have to put the price down as others have said there is no change when the pound is strong

I was in UK recently and noticed that most of the farmland grows solar panels, houses or roads so not much chance of those at meal times. Also most of the veg grown in East Anglia is picked by E Europeans so that won't be available for long. So good luck with a Buy British food policy.

IMHO Tesco is trying to show itself as the consumers' champion, maybe to help peeps forget the fraud of recent times.

 

[frogijock]

I wonder if Unilever and other European manufacturers are coming under pressure from Brussels to hit the U.K. Hard,this to stop other countries (as Hollande said) leaving the EU

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[Riverbankannie]

I'm already stocked up from Costco

 

[maison]

Yes prices will go up because of the weakness of the pound, but.....

Mr Unilever, the raw ingredients are only a small proportion of the final cost of the product. Think, packaging, distribution, advertising, business rates, wages of staff etc. Not all of these have gone up by 10%.

Sorry, I think Brexit is going to get the blame for a lot of things for which it is not responsible. It is a great "Not my fault guvnor" get out for firms looking to raise prices.

 

[Gromett]

And who pays for Unilever staff wage rises?
Rates rises?
Increased pension contributions?
Etc etc?
I'm not pro Unilever - as a business owner and employer I'm just aware that prices must rise to meet increasd costs, wherever they come from.

What??? I have no idea what your point is here? I didn't mention wages and have no idea where this is coming from or how it is relevant?

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[Larrynwin]

Oh no, just realised BRUT is on the list ,I like to
Splash it All Over

 

[Charlie]

I wouldn't trust Tesco (or any other major supermarket for that matter) as far as I could spit. There are two sides to this story and Tesco are playing the media very well for their part.

There's never any mention of the practice's these supermarkets use to lock suppliers into trade terms (dutch auctions and the like) and clearly don't like it up-em when a supplier with the clout of Unilever put their foot down.

It'll be interesting to see how this plays out moving forward but ultimately it'll be the consumer who pays for it!

It was not Tesco who went public. In fact they would have preferred it hadn't.. My wife before her back injury was senior staff at Tesco and these kind of negotiations go on every single day as the company buy thousands of products from hundreds of suppliers.

But some journalist spotted that all of the products that had been removed from online sales were from Unilever ..

I as a previous business owner had to negotiate for the kit I had to buy. On a good day I could earn great money if I could source products at a favourable rate. I could often buy building materials from north of Hadrians wall cheaper than I could here in Worcestershire. Why wouldn't I ?? I'm talking the very same items just at less cost.

This whole thing has been wound up by those who have frankly bugger all better to do. Of course it wouldn't have been so juicy if brexit was not the cause .

I'm not in the slightest bit interested in politics but brexit has to come with costs for some at least in the short term.

Look how many people are over reacting over what is an everyday common business transaction. It really is incredible !

 

[Charlie]

What??? I have no idea what your point is here? I didn't mention wages and have no idea where this is coming from or how it is relevant?

Roberts point is that Unilever have to maintain profits to pay for wages materials and the shareholders cut without which big business would fail.

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[Gromett]

Roberts point is that Unilever have to maintain profits to pay for wages materials and the shareholders cut without which big business would fail.

That goes without saying. But totally misses the point I made. They are raising their prices across the board on all products even those that are not affected by the currency fluctuation.

 

[Robert Clark]

What??? I have no idea what your point is here? I didn't mention wages and have no idea where this is coming from or how it is relevant?

The point I'm trying to make is that a business bases its prices not only on the cost of UK raw materials.
Even without the pressures of the falling pound, there are other cost increaes which need to be paid for.

 

[Imbiber]

Hands up all those that have merrily filled there shopping trolley up with 3 for 2 deals, BOGOF deals, special price promotions etc. etc. as they wonder round these supermarket stores believing they're getting a great deal.

At the checkout have you ever checked carefully your till receipt to make sure you've paid the right price or got the right deal? With a trolley full to the brim and your wallet out £100+ I very much doubt it.

I can guarantee that these supermarkets will have fleeced you somewhere on some product that you don't notice and as such are probably up at least 50p per customer; and these deals are supplier funded...not out of the kind generosity of Tesco et al!!

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[jonandshell]

Did you buy British when you bought your Motorhome ?

Nope, but I wanted spinach.
British manufacturers only make cabbage.

You can't compare apples with pears!

 

[gus-lopez]

It's good that Tesco are taking a stand, but ultimately this is just the beginning. Prices are bound to increase for everything post brexit.

No, it makes a change to see them on the receiving end as their treatment of suppliers over the years has been the worst of all the supermarkets.& if for any reason they took a dislike to you , you would never ever get another chance to supply them. Even if you then went & bought a company that was already supplying them & had been successfully for many year. They certainly weren't complaining when they had profits in the billions & were screwing the suppliers. Boots on the other foot now .

I was in UK recently and noticed that most of the farmland grows solar panels, houses or roads so not much chance of those at meal times. Also most of the veg grown in East Anglia is picked by E Europeans so that won't be available for long. So good luck with a Buy British food policy.

IMHO Tesco is trying to show itself as the consumers' champion, maybe to help peeps forget the fraud of recent times.

& the solar panels were all installed by the Spanish.
& is it British from the East Anglians as they own, farm & produce from huge quantities of land both here in Murcia & all down into Andalucia ?

I wonder if Unilever and other European manufacturers are coming under pressure from Brussels to hit the U.K. Hard,this to stop other countries (as Hollande said) leaving the EU

Don't mention things like that ! Apparently I'm paranoid, I see plots & intrigue everywhere. matron will be coming round with some tablets for you as well shortly

I'm already stocked up from Costco
View attachment 128875

Are they the 15 Litre ones ?

 

[Robert Clark]

Nope, but I wanted spinach.
British manufacturers only make cabbage.

You can't compare apples with pears!

British vans seem to have plenty of leeks though

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[gus-lopez]

Oh no, just realised BRUT is on the list ,I like to
Splash it All Over

Wilko's sell it. Or Lidl's in France .

Roberts point is that Unilever have to maintain profits to pay for wages materials and the shareholders cut without which big business would fail.

But the 'shareholder cut' as you put it was never a built in. That is what buying shares was all about. You loaned money (buying the shares) on the hope of a better return than elsewhere having done due diligence on how the business was run & could be expected to grow in the future. A guaranteed return was never built in.

; and these deals are supplier funded...not out of the kind generosity of Tesco et al!!

Yes , I forgot all about them . Biggest supermarket scam on suppliers that ever was . They do a 2 for 1 , or cut the price per kilo by 50% & Supplier pays at least 75% of the reduction in cost, then they have to pay overtime rates to staff to supply double the usual order & the supermarket gets any gains from the additional customers & what else they might buy when shopping, whilst the supplier is usually out of pocket.

 

[jessthedog]

I'm already stocked up from Costco
View attachment 128875

That reminds me, when i was a kid and there was a sugar shortage. the reason was that people were hoarding it.
That was the days that folk would have 4 sugars in their tea, but tell you not to stir it, coz they don't like it sweet!

 

[Gromett]

The point I'm trying to make is that a business bases its prices not only on the cost of UK raw materials.
Even without the pressures of the falling pound, there are other cost increaes which need to be paid for.

Believe me I know this, I have run companies for 20 years and been management for a few more.

When the costs of some of my products go up I never raise the price on all of them. For instance when I ran a hosting company, when the cost of Domains increased I didn't raise the price on hosting and domains, just the domains.

Tesco's complaint is that an across the board price rise of 10% is unjustified. I do not like Tesco but on this I agree with them. If they were to raise the prices on products that are imported by 12% and kept the prices of non imported products the same, I wouldn't have an issue.

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[Charlie]

British vans seem to have plenty of leeks though

A lot of foreign ones are Taters.....

 

[busby]

IIRC GBP began it's collapse the day after the Brexit vote - it has just headed a bit nearer the U-bend in the last few days.

It has been lower pre BREXIT,,,BUSBY,,

 

[jessthedog]

The head of Tesco comes from Unilever, so he knows that Unilever are trying to pull a fast one. He knows how it all works.
i bet that the price rise will be less than 10 per cent.

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[busby]

I was in UK recently and noticed that most of the farmland grows solar panels, houses or roads so not much chance of those at meal times. Also most of the veg grown in East Anglia is picked by E Europeans so that won't be available for long. So good luck with a Buy British food policy.

IMHO Tesco is trying to show itself as the consumers' champion, maybe to help peeps forget the fraud of recent times.

Even with Brexit Eastern Europeans will still pick veg but only when needed,,they won't be able to live in UK full time,,,BUSBY.

 

[Riverbankannie]

That reminds me, when i was a kid and there was a sugar shortage. the reason was that people were hoarding it.
That was the days that folk would have 4 sugars in their tea, but tell you not to stir it, coz they don't like it sweet!

Just coincidence, I am nearly at the bottom of one and the other is my store cupboard one, bought a week or two ago on last visit.

 

[DanielFord]

Even with Brexit Eastern Europeans will still pick veg but only when needed,,they won't be able to live in UK full time,,,BUSBY.

What are you basing that on, everything I have seen so far from the government guarantees them the right to live here?

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[Larrynwin]

British vans seem to have plenty of leeks though

The Welsh ones perhaps

 

[jessthedog]

Just coincidence, I am nearly at the bottom of one and the other is my store cupboard one, bought a week or two ago on last visit.

Better get down to Costco then

 

[busby]

What are you basing that on, everything I have seen so far from the government guarantees them the right to live here?

Those that already live here yes,,,BUSBY,,,

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[Silver-Fox]

I voted with my eyes open and was fully aware that this could happen but decided that it was a price worth paying, so I won't be moaning.

That makes two of us

Just wait and see what happens when the sh*t hits the fan in Germany after we finally get out of the EU.

Sorry for the drift.

 

[DanielFord]

Those that already live here yes,,,BUSBY,,,

If you're expecting a massive change in the immigration policy after brexit, I'm afraid you are going to be very disappointed.

 

[Robert Clark]

Believe me I know this, I have run companies for 20 years and been management for a few more.

When the costs of some of my products go up I never raise the price on all of them. For instance when I ran a hosting company, when the cost of Domains increased I didn't raise the price on hosting and domains, just the domains.

Tesco's complaint is that an across the board price rise of 10% is unjustified. I do not like Tesco but on this I agree with them. If they were to raise the prices on products that are imported by 12% and kept the prices of non imported products the same, I wouldn't have an issue.

I can only guess that Unilever's pricing model is different than Tescos
Doesn't mean it's wrong, just means that Tesco's feeling the pinch.
Didn't hear Aldi, Lildl, Waitrose, Asda or anyone else complaining.

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