Whiskas pet food off Tesco shelves after price row

Mars has stopped supplying supermarket chain Tesco with its Whiskas pet food in a row over prices.

The two companies are engaged in a price dispute which Tesco said it hoped would be "resolved soon".

The UK's biggest supermarket said it would not pass on "unjustifiable price increases" from suppliers its to customers.

Mars said it could not comment on individual commercial relationships or situations.

As the cost of living rises for shoppers, retailers like supermarkets are fighting to retain customers and protect profit.

It comes after US food retailer Kraft Heinz pulled its products from sale at Tesco in a similar dispute over the price of its products including soup and ketchup.

Tesco added: "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."

The price rises from Mars, whose pet products include Whiskas, Dreamies and Pedigree, come as inflation is at a 40-year high, at 9.1%.

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Customers are also struggling with rises in energy bills, with the average bill now expected to rise to £3,000 per year in October.

"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," said Mars.

It added: "The in-store price continues to be at the sole discretion of the retailer."

Some Tesco stores have experienced a lack of Mars pet foods on their shelves as a result of the dispute, and there are also some stock shortages on Tesco's website.

Mars said: "We are aware that some of our Petcare products are currently out of stock at Tesco stores.

"There are many reasons why our products may be out of stock in certain stores from time to time. We cannot comment on individual commercial relationships or situations."

Challenges

The tussle between Tesco and Mars and Heinz illustrates the challenges facing suppliers and supermarkets as they struggle with huge cost increases.

"Suppliers are now saying: 'This is what I can afford to sell this product to you for. And if you don't agree I am going to stop supplying you,'" says Ged Futter, founder of The Retail Mind and former buyer for Asda supermarket.

He added: "I've never seen as many suppliers prepared to stop the trucks."

"Tesco can't afford to have empty shelves for months on end. If customers see large swathes of empty shelves, then they have to go somewhere else," Mr Futter told the Today programme.

Supermarkets have buyers who agree deals with suppliers to provide them with products. For many items, like olive oil and tinned tomatoes, it can be an annual contract.

Both sides are allowed, under the Groceries Supply Code of Practice, to adjust terms and conditions. The editor-in-chief of the Grocer magazine, Adam Leyland, says in the past retailers typically demanded changes but now it is suppliers who are clamouring to renegotiate what they are getting paid.

"Suppliers are saying we need change and we need it quickly. Supermarkets have been dragging their feet for a long time. This has been building from last year and the dial has now turned up.

"It's fraught on both sides. This is not an easy time."