Tesco has fallen out with German confectionery company Haribo after the sweet manufacturer apparently rejected Tesco’s demand for lower prices, resulting in Tesco’s refusal to sell Haribo products.
The dispute was due to a continuing price disagreement as earlier this year, Tesco allegedly requested that suppliers agree to cut prices in an effort to compete with rival supermarket brands, giving them until the 10th of July to comply.
Haribo reportedly declined this proposal and, as a result, Tesco is “effectively not ordering” its stock. and, according to an insider, Tesco is not selling Haribo properly because they have “fallen out.”
An insider said, “Tesco’s strategy of having a business operation model that supports buying products from brands and retailing them at Aldi prices just isn’t working. Suppliers are saying they are off their head, their business models are different. This just doesn’t work. Haribo can’t do it, haven’t played the game, and guess what – Tesco aren’t stocking them.”
Customers have noticed how Haribo sweets have dispersed from Tesco’s shelves, and this is down to the confrontation between the two companies.