Supermarket refuses to accept brewer Heineken’s price increases, which it blamed on the weak pound and the budget

This article is more than 3 years old

This article is more than 3 years old

Fans of Heineken beers including Amstel, Sol and Kingfisher will not be able to find them in Tesco for the foreseeable future after the supermarket refused to accept price increases the brewer blamed on Brexit and the budget.

Several of Heineken’s brands have been absent from Tesco shelves for six weeks after annual talks over pricing ended in a stalemate. In total, 24 out of 53 Heineken brands are affected, with eight pulled from the shelves altogether.

Heineken is understood to have argued that inflation since the Brexit referendum has pushed up its costs, echoing the argument made by Unilever in its dispute with Tesco over the price of Marmite last autumn.

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The brewer has also faced unexpected pressure from a surprisingly stiff increase in alcohol taxes in the budget earlier this month.

Philip Hammond raised beer duty in line with the retail price index measure of inflation, but used a forecast rate of 3.9%, rather than the current RPI level of 3.2%.

The higher-than-expected duty rise, coupled with increased costs for bottles, packaging and fuel because of the pound’s slump since the EU referendum, is understood to be behind the Heineken’s decision to ask for higher prices.

Tesco’s refusal to pay more means it will no longer stock Tiger, Amstel, Sol, Kingfisher, Birra Moretti, Blind Pig Cider, Fosters Gold and Fosters Radler.

It will also stop stocking larger pack sizes for 16 other beer brands including Heineken, Fosters, Strongbow, Kronenbourg 1664 and Newcastle Brown Ale.

The two companies are not expected to reach a compromise agreement over pricing in the near future.

The dispute has not proved hostile, however, with Tesco agreeing in the last few weeks to start stocking Heineken’s new zero-alcohol beer.

A spokesperson for Heineken said: “We don’t comment on commercial arrangements with our customers. “Shoppers will continue to find a broad range of our fantastic beer and cider brands in Tesco.”

A spokesperson for Tesco said: “We frequently review our ranges to ensure they meet the needs of customers. We continue to offer customers a great range of beer, lager and cider.”

Heineken’s bid to raise prices for its products in supermarkets comes just a few months after it put 6p on a pint in pubs, a decision it blamed on the weak pound.