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More Brexit fallout: Ben & Jerry's pulled from shelves

21 October 2016

Tesco, the largest retailer in Britain, pulled all Unilever products from its online website in a row over pricing.

SuperValu say their stores may experience supply issues because of a price dispute with Unilever.

The dispute between Tesco and one of the world's biggest consumer goods companies means popular products such as Persil washing powder, PG Tips tea bags and I Can't Believe It's Not Butter spread, are not now available on Tesco's website, the country's largest online grocer.

The pound has fallen 15% against the euro since June 23.

United Kingdom supermarket chain Tesco and consumer goods giant Unilever have settled their price dispute reportedly caused by the post Brexit changes. Tesco shares were down 1.96% and Unilever was down 2.46% in morning trading.

Unilever demanded the prices of its products be increased in order to offset the cost of imported commodities following the recent fall of the pound, the Financial Times reported citing executives at numerous supermarket groups.

Customers have now been panic buying their beloved products as it remains unclear when the issue will be resolved.

Announcing the resolution, Unilever said in a statement: "Unilever is pleased to confirm that the supply situation with Tesco in the United Kingdom and Ireland has now been successfully resolved".

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Unilever had told Tesco it meant to raise its prices by about 10% to compensate for the recent drop in the value of the pound.

He added that price increases were a "normal" part of doing business.

That kind of approach has upset many grocers, said the analyst.

The pound has fallen in value against most other major currencies, including the Australian Dollar - by 17.6%.

The shares fell as much as 3.7 per cent in London, the biggest intraday drop since January 20th, as the company said it does not expect market conditions to improve in the fourth quarter.

Price increases are particularly worrying for the big supermarkets in light of increasing numbers of consumers flocking to discounters Aldi and Lidl.

According to Graeme Pitkethly, Unilever's CFO, the price increases the company is passing on are lower than the impact on its own profitability.

More Brexit fallout: Ben & Jerry's pulled from shelves