Tesco appears to have avoided a repeat of the Colgate price dispute that left shelves bare in February last year, as it hiked prices across multiple lines in March.
The retailer raised prices on 11 Colgate products this month by an average of 28%. Total Original Care toothpaste rose from £3 to £4, according to The Grocer’s KVI tracker.
Colgate disappeared from Tesco for most of February last year after a dispute over prices. Most products later returned to shelves at a higher price.
It makes sense that Colgate has managed to push through price hikes this year, said David Sables, CEO of Sentinel Management Consultants.
“It’s very difficult for retailers, especially when they pushed back a year ago, to deny that the cost price the supplier puts forward is justifiable,” he said.
Colgate did not respond to requests for comment.
Colgate products are now up to 78% more expensive at Tesco than a year ago, analysis of Assosia data by The Grocer shows.
However, Sables argued Colgate’s price increases were justified, pointing to cost pressures like fuel, commodities and packaging.
“It’s hard to deny that this has been the effect on their business.”
A spokesman for Tesco said: “We are absolutely committed to helping our customers by keeping a laser focus on the cost of the weekly shop, and the range of Colgate toothpastes in Tesco stores is competitively priced, starting with Aldi price-matched Colgate Triple Action at 98p.”
Tesco’s relationship with suppliers has been in the spotlight recently after Tesco chairman John Allan told the BBC that some food companies may be using inflation as an excuse to hike prices.
However, Allan also said most price hikes were legitimate.
Earlier this month, Tesco came under fire after it wrote to suppliers informing them it would be introducing Amazon-style fulfilment fees.
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