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November 17, 2016

Unilever, Musgrave strike deal ending Brexit price spat 

Unilever and Musgrave have struck a deal bringing to an end a pricing dispute that saw the consumer goods giant halt deliveries of some of its brands to the Northern Irish retailer. 

Unilever and Musgrave have struck a deal bringing to an end a pricing dispute that saw the consumer goods giant halt deliveries of some of its brands to the Northern Irish retailer. 

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The dispute kicked off last month when Unilever tried to push through price increases to offset the negative impact that currency exchange is having on profitability. 

While Unilever and Musgrave were able to reach an agreement over the majority of Unilever’s brands, the companies were unable to agree on price increases for Unilever’s ice cream brands such as Ben & Jerry’s and Magnum.

A spokesperson for Unilever confirmed today (17 November) the company has reached a deal with Musgrave. Supplies resumed last Monday, the spokesperson added.  

“Following a satisfactory conclusion to recent commercial discussions, Musgrave and Unilever are pleased to confirm that supply of all Unilever products to all Musgrave stores recommenced,” Unilever and Musgrave said in a joint statement.

Further details were not revealed. 

Musgrave operates the SuperValu and Centra stores in Ireland. 

This latest pricing spat follows widely publicised negotiations between Unilever and the UK’s Tesco. The final agreement reached with Tesco – details of which have not been revealed – saw stock levels return to normal at the retailer’s chain of stores in the UK and Ireland.

Addressing the Tesco dispute, Unilever CFO Graeme Pitkethly said the UK price increase was “a normal devaluation-led cycle”.  

He added pricing decisions are made at a local level based on consumer affordability. “We care deeply about customer affordability of our brands. And as a consequence the increases we are taking are substantially less than we would need to cover the impact on our profitability,” Pitkethly said. 

According to Pitkethly, the group’s UK price increases “have landed with most of our customers”. 

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Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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