Insiders claim that supermarkets and not suppliers are behind unfairly high food prices on shelves

Insiders claim that supermarkets and not suppliers are behind unfairly high food prices on shelves

  • Supermarkets are fueling the cost of living crisis by driving unfairly high prices
  • Food inflation is rising 15 percent, with basics rising by 30 and some doubling in price

Industry insiders claim that supermarkets are fueling the cost-of-living crisis by driving unfair price hikes.

The row comes after the Tesco chairman sparked outrage with allegations that some suppliers were responsible for demanding unjustified increases in grocery prices.

Food inflation is up 15 percent, with basics up 30 percent and prices of some products doubling in the past year, according to research by Which? and others.

When asked by the BBC’s Laura Koensberg if food producers were taking advantage of customers, Tesco chairman John Allan said it was “entirely possible”.

The row comes after the Tesco chairman sparked outrage with allegations that some suppliers were responsible for demanding unjustified increases in grocery prices. Food inflation is up 15 percent, with basics up 30 percent and prices of some products doubling in the past year, according to research by Which? and others

Disagreements with Heinz and Mars Petcare halted sales of some products last year

Disagreements with Heinz and Mars Petcare halted sales of some products last year

He said the UK’s largest supermarket chain had “disagreed with suppliers” over prices and was trying “very hard to challenge cost increases”.

Disagreements with Heinz and Mars Petcare halted sales of some products last year.

But Ged Vetter, a former Asda buyer, has argued that supermarkets set prices on shelves, and suggested they are responsible for paying unfairly high prices to protect their billions of pounds in profits.

Futter, now a retail analyst, called the comments made by Alan “outrageous”.

He said, “Some suppliers are profiting but at the same time, we also know that some retailers are setting their prices higher than the inflation they are receiving. I would say it is disingenuous to talk about profiteering from suppliers.”

‘he [Mr Allan] He also seems to forget that the price on the shelves is the responsibility of the retailer, not the supplier.

The supplier is responsible for taking care of their costs to make sure they survive. After that whatever goes up (the price), the retailer.

He pointed out that “Tesco” is on its way to reveal large profits for the past year.

They are looking at £2.5 billion. They’re about five weeks into the year’s end, and all buyers will be focused on hitting that number. Retailers’ profitability is under pressure but not to the level where they are concerned.”

Ged Futter, a former Asda buyer, has argued that supermarkets set prices on shelves, and suggested they are responsible for paying unfairly high prices to protect their multi-billion-pound profits.

Ged Futter, a former Asda buyer, has argued that supermarkets set prices on shelves, and suggested they are responsible for paying unfairly high prices to protect their multi-billion-pound profits.

Research published by Which? In the past week, confidence in supermarkets to treat customers fairly has plummeted.

“Among consumers who mistrust the sector, price hikes have emerged as a common cause, particularly the perception that prices are sometimes artificially inflated, beyond what is necessary for companies to offset their own increased costs,” she said.

National Farmers Union (NFU) president Minette Butters criticized the suggestion that farmers might be among the suppliers unfairly asking for higher prices.

She responded to Mr Allan’s comments on the BBC’s Wake Up to Money, saying: ‘It was like living in a parallel universe.

He added, “We are seeing wholesale gas prices 650 percent higher than they were in 2019, and cost inflation on the back of that has been unprecedented.

“This has dwarfed any price increases to date.”

The head of the UK Food and Drink Federation (FDF), speaking on behalf of the manufacturers, also criticized Allan’s remarks.

Karen Bates said: “All of our suppliers know they have huge responsibilities to keep food affordable. They all make savings where they can.

Most supermarkets require suppliers to open their books to justify where the cost has risen, so I think it’s hard for Tesco to come out and say they think the companies could be profitable.

“I think they certainly have the evidence for every price hike.”

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