Jim Armitage: This Marmite squeeze kills off the cuddly image of Unilever
Unilever’s reputation is of being the touchy-feely nice guy of the faceless multinationals. Kindness to animals, sustainable sourcing — you name it, Unilever does it.
The schtick looks a bit hollow on Thursday.
In what other consumer industry do you see a supplier demand — take it or leave it — an instant 10% price rise?
If you thought we had it bad, pity the Latin Americans, where Unilever just increased prices by 15.5% , also blaming currency devaluation.
Sure, currency-related costs for some raw materials have risen post-Brexit, but Unilever is whacking up everything — whether from Burton-on-Trent or Brussels.
Funnily enough, nobody recalls any rush by Unilever to cut prices when the pound was strong.
That’s why its profit margins are presently around 15%: Tesco’s are 1.8%. Now, you decide, who can best afford to take the brunt of the currency hit and save consumers the pain?
Tesco’s Dave Lewis, formerly of the Unilever parish, must hold his nerve and wrest a compromise.
He can revel in the irony that after years of being loathed for tyrannising suppliers, it’s now Tesco which can claim the moral high ground.
