Gorilla tactics?published at 08:04 British Summer Time 13 October 2016
More now on the row between Tesco and Unilever over price increases, this time from industry analysts at Bernstein ...
Quote MessageIt's the supplier's role to pass on increased cost and it is retailer's job to challenge price increases. It happens all the time and in the end they settle for what seems a fair cost allocation. However, those discussions rarely spill open in public and rarely lead to de-listings. Clearly the scale of the negotiation is much bigger than usual, but so is the event. Brexit-sized events are rare. This is such a large event that it may simply be that the two gorillas on both sides have decided to go through the motions of the negotiation on behalf of the industry. This isn't about Tesco or Unilever but about all UK retailers & suppliers.
Bruno Monteyne and Andrew Wood, Analysts, Bernstein