Unilever says pricing row with Tesco resolved

Global FMCG major Unilever on Thursday said it had resolved a pricing dispute with leading UK supermarket chain Tesco that was threatening to push some of the country's most famous household brands off the shelves.

"Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved," Unilever said.

"We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available. For all those that missed us, thanks for all the love," the statement added.

Some of the UK's most famous household brands were in danger of being out-of-stock in some supermarkets after the firm had planned to raise prices in the UK to compensate for the sharp drop in the pound's value.

No details of the resolution have been released so far after the economic impact of Brexit had been blamed for the multinational's move to raise prices.

Tesco responded by removing Unilever products from its website.

"We are taking price increases in the UK. That is a normal devaluation-led cycle," said Graeme Pitkethly, Unilever's chief financial officer.

A Tesco spokesperson said the supermarket was offering Unilever products as usual in stores, even though they had vanished from its website.

"We are currently experiencing availability issues on a number of Unilever products. We hope to have this issue resolved soon," he said.

Unilever is one of Britain's biggest suppliers of branded food and household goods and claims its products are found in 98 per cent of UK households.

Its brands in the UK include globally known names such as Dove and Vaseline.

It was reported that the firm was trying to charge Tesco an extra 10 per cent for its goods, blaming the pound's dramatic fall against the euro and the dollar since Britain's referendum to leave the European Union (EU) on June 23.

The pound sterling has dropped by 16 per cent against the euro since the UK's Brexit vote.