Tesco share price: Group scraps Heineken range in price row
Tesco (LON:TSCO) has pulled more than half of Heineken’s beer and cider range after the latter tried to increase prices in the wake of the Brexit vote, The Times has reported. The move follows a 24-hour price dispute with Unilever (LON:ULVR) in October, which saw Britain’s biggest supermarket remove Marmite, Ben & Jerry’s ice cream and Lynx body spray brands from its website.
Tesco’s share price has fallen into negative territory in London this morning, having shed 0.64 percent to 187.70p as of 09:32 GMT, marginally outperforming the selloff in the broader UK market, which has seen the benchmark FTSE 100 index dip 0.91 percent to 7,311.40 points so far this morning. The group’s shares have lost nearly seven percent of their value over the past year, and are down by some nine percent in the year-to-date.
The Times reported this morning that Tesco was now stocking only 22 of Heineken’s brands, down from 53 at the start of the year with the Amstel, Sol, Tiger and Kingfisher names disappearing from shelves. The move comes after the Dutch-based brewer unveiled plans to increase prices by an average of 6p a pint, pointing to ‘prevailing economic conditions’ following a 15-percent slump in sterling in the wake of the Brexit vote.
A spokesman for Tesco told the newspaper that the change was designed to better match its range of beers and ciders with the demand from customers, while Heineken noted that it did not comment on commercial arrangements with supermarkets.
In analyst news, Credit Suisse reiterated its ‘underperform’ stance on Tesco this week, with a price target of 180p on the stock. According to MarketBeat, Britain’s biggest grocer currently has a consensus ‘hold’ rating and an average price target of 196.59p.
As of 09:46 GMT, Wednesday, 22 March, Tesco PLC share price is 187.71p.