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Tesco removes Schweppes lines from shelves in row over pricing

| International retailers

Tesco stopped stocking some Schweppes soft drinks lines in its stores in recent weeks due to what is thought to be a dispute over pricing with the brands owner Coca-Cola Enterprises. .

 The Grocer magazine reported at the end of last week that 25 lines had been taken off the retailer’s shelves after clashing with Coca-Cola during annual negotiations. The supplier is said to have been requesting that its products should be sold at higher prices, conflicting with Tesco’s current strategy to drive down prices to tempt shoppers back to its stores.

 

The Grocer said that Tesco had rejected Coca-Cola request for price increases because of falling commodity prices and the current tough trading conditions for carbonated drinks. This has led to supplies to Tesco of Schweppes popular mixers and lemonade products being suspended.

Further press reports said that Schweppes products could return to Tesco stores this week, although it is not clear if the row has been resolved. A spokesperson for the retailer is quoted saying: “We have had to temporarily adjust some of our soft drinks ranges. We continue to work in close collaboration with our suppliers.”

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