UK: Britain's largest supermarket scraps more than half of Heineken range in response to brewer’s plan to hike prices

Tesco has scrapped more than half of its Heineken beer and cider range, after the brewing giant unveiled plans to hike prices in response to the pound's decline following the Brexit vote, the International Business Times reported on March 22.

According to the Times, Britain's largest supermarket has reduced the number of Heineken products on its shelves from 53 at the start of the year to 22. Tiger, Amstel, Sol and Kingfisher are among the beers to have disappeared from Tesco's stores.

A spokesman for the company was quoted as saying the decision was motivated by the intent to better match the range of beers and ciders to customers' needs.

In January, Heineken said it would raise prices by an average of 6p per pint, blaming its decision on "prevailing economic conditions", chief among them being sterling's 16% drop in the months following Britain's vote in favour of leaving the European Union.

A weaker pound makes imports more expensive and even though the majority of beers brewed in Britain are made with home-grown ingredients, brewers have been hit by higher transport and energy costs.

It is not the first time Tesco and one of its major suppliers has become embroiled in a price row.

In October last year, a squabble blew up between the retailer and Unilever, when the Anglo-Dutch firm raised wholesale prices by 10% forcing the supermarket to cover the rising costs of goods made abroad since June's Brexit vote.

However, Tesco, which has a 28% share of the UK grocery market, refused to pay, pulling popular Unilever products such as Marmite, Ben & Jerry's ice cream and Persil detergents off its online shopping platforms.

The corporate row, dubbed Marmitegate at the time, was soon resolved and Unilever products returned to all Tesco stores but only after the government was forced to intervene.

21 March, 2017