Tesco shares price: Grocer removes Coca-Cola soft drinks due to supply issue

on Mar 10, 2015
Updated: Oct 21, 2019

Tesco (LON:TSCO) said yesterday that it had to “temporarily adjust” some of its soft drinks ranges due to supply issues. Britain’s biggest retailer is understood to have removed 25 lines of Schweppes from its supermarket shelves after falling out with producer Coca-Cola Enterprises over the price to charge consumers for its drinks.

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Tesco has been renegotiating terms with many of its suppliers to make contracts simpler in its effort to bring down prices for customers. According to trade magazine The Grocer, a dispute with Coca-Cola has emerged as the drinks giant requested that its products should be sold at higher prices. It is understood that some Schweppes products could return to Tesco stores later this week, but it is not clear if the row has been resolved.

Tesco has not confirmed the dispute with Coca-Cola, but said that there had been “a supply issue”. A company spokesperson told the Telegraph yesterday: “Due to a supply issue, we have had to temporarily adjust some of our soft drinks ranges. We continue to work in close collaboration with our suppliers, to provide our customers with the best products, the greatest value and fantastic availability.”
As of 09:19 GMT, Tesco’s share price has been trading unchanged at 240.30p. According to the Financial Times, the 17 analysts projecting 12 month price targets for the FTSE 100-listed retailer, have a median target of 235.00p, with a high estimate of 325.00p and a low of 1555.00p. As of 7 March 2015, the consensus forecast amongst 31 polled investment analysts covering Tesco has it that investors should hold their position in the company.
As of 09:45 GMT, Tuesday, 10 March, Tesco PLC share price is 239.90p.


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