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Started by: gaffer (7963) 

From the Telegraph.

According to insiders, this means the food manufacturer can be tougher on price demands. Heinz is understood to have asked for a more than 30pc price increase at some retailers, described by one industry insider as “unheard of”.
Retail data suggests prices of Heinz products have already risen. According to figures compiled for The Telegraph by Assosia, the average price of a 415g tin of Heinz Baked Beanz at supermarkets is up 22pc since the start of the year. Ketchup, meanwhile, has risen 17pc.
Increases at Tesco have so far not been as pronounced as elsewhere. The supermarket raised its price for baked beans from 85p to £1 last December – a hike of 17.6pc, according to the figures. Asda, however, increased theirs from 90p to £1.20 earlier this month – up 33.3pc – and Sainsbury’s from £1 to £1.20, or 20pc.
“In all fairness to Heinz, who knows what issues they've actually got?” says one canned foods importer, adding that their own costs have been rising in all areas. “There's just nothing that hasn't gone up substantially. Nothing.”
Tomatoes, which used to cost between €7 and €9 (£6 and £7.8) a case are now €15. Prices have gone up 25pc on beans.
Heinz last year cautioned over inflation “across the board”, saying it was struggling with a lack of truck drivers and soaring commodity prices.
Logistics for Heinz’s UK production could also pose a problem. It makes its Baked Beanz at a site in Kitt Green, Wigan, producing 3m cans per day. The UK consumes an average of 2.5m cans of its beans every day.
To make the final product, the company rehydrates imported beans from North America, before combining them with spices and tomato sauce to cook in the can. Relying on imports can lead to further costs amid surging fuel prices.
These challenges will be at the forefront of Heinz’s mind as it faces off against Tesco – a company which has positioned itself as a consumer champion in this battle. Some say the supermarket will ultimately have to give in.
“Here we go again,” says Ged Futter, a former senior Asda buyer. “Of course they will be passing it on… As a wise man once said 'you can't sell fresh air', it might be worth reminding a few of the retailers of this as they seem to have forgotten it.”

Replied: 1st Jul 2022 at 12:52

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