Tesco has become embroiled in its second major supplier spat in a month and has pulled Mars Petcare products from shelves while it renegotiates on price.
The UK’s largest supermarket has yet to reach an agreement with Heinz over buying terms for its baked beans, ketchups and condiments, and is now facing a similar impasse with Mars Petcare over petcare products like Whiskas and Pedigree.
The second producer spat in weeks highlights how rampant inflation is straining relations between retailers and suppliers.
Mars Petcare, which produces brands such as Whiskas and Dreamies for cats and Pedigree and Cesar for dogs, has paused supply to Tesco until an agreement can be reached on price, causing gaps on shelves and availability issues online.
A Tesco spokeswoman said that Mars chocolate and confectionery products would still be available at stores and online.
The spokeswoman said: “We’re laser-focused on keeping the cost of the weekly shop in check, offering customers great value through our combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices.
“With household budgets under increasing pressure, now more than ever we have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers.
“We’re sorry that this means some products aren’t available right now, but we have plenty of alternatives to choose from and we hope to have this issue resolved soon.”
Mars Petcare told the FT: “The pet food industry, like many others, is operating in a volatile context marked by wide-ranging inflationary pressures, and we continue to absorb these rising costs as much as possible. The in-store price continues to be at the sole discretion of the retailer.”
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