Haribo shares fell in Tesco due to the row over price cuts

Image copyright
Tesco

Tesco is allowing stocks of Haribo sweets to run down from its shelves after a dispute with the confectioner over price cuts.

The Grocer reported that the supermarket giant is asking suppliers for lower prices to allow it to compete with German discount firm Aldi.

Haribo and Tesco failed to hit a bargain, and domains like Tangfastics and Starmix are not available online.

Tesco said it continues to stock Haribo products online and in store.

“We hope the full range will be available again for customers soon,” said a spokesperson for the supermarket chain.

In March, Tesco launched its “Aldi Price Match” campaign, to match the prices of hundreds of its goods with the German discount.

She then asked suppliers to lower their prices as part of a strategy to take Aldi. The companies were told they had until July 10 to approve.

A spokeswoman for Haribo said: “We are aware of some products that are out of stock, but we can confirm that Haribo has not been written off by Tesco.

“No comment can be made regarding any business discussions with our clients other than our conversations are ongoing.”

While many sectors suffered during the Coronavirus pandemic, supermarkets boomed after customers initially panicked products and increased demand for grocery deliveries online.

Tesco’s latest results show, for the 13 weeks to the end of May, that similar sales in the UK and Ireland rose 8.2%.

Online sales in the UK jumped 48.5% after growing particularly strong in May. This resulted in Tesco creating 16,000 permanent jobs to support its rapidly growing online business.

Haribo is one of the most famous confectioners in the world, its products are sold in 100 countries and they employ 7000 people.

Haribo was founded in Germany 100 years ago by the confectioner Hans Riegel, born in Bonn – the brand name comes from a mixture of Hans Riegel and Bonn.

The inventor of the Gumi bear died in 1945, near the end of World War II. The business was transferred to his two sons, Hans and Paul, after American forces released them as prisoners of war.

READ  Hope for some, mourning for others as home prices rise Capital

Leave a Reply

Your email address will not be published. Required fields are marked *