Morrisons raises price of Marmite by 12.5%

By Matt Atherton

- Last updated on GMT

Morrisons raises price of Marmite
Morrisons raises price of Marmite

Related tags Cost Supermarket Asda Tesco Unilever

Morrisons has raised the price of 92 Unilever products, including Marmite, just days after Tesco’s highly public row over Unilever’s price increase demands.

The price boost meant Morrisons was the first supermarket to raise the price of Marmite since Tesco’s row with the Marmite manufacturer, Unilever.

The retailer increased the price of Marmite by 12.5% to £2.64 for a 250g jar, and Colman’s English Mustard by 10% to £1.56 for 170g.

‘Increase prices as a result of costs rising’

A Morrisons spokesman said: “Sometimes, we have to increase prices as a result of costs rising – though we do our best to avoid this. More often than not, we have been reducing prices. More than 3,000 products are currently cheaper in Morrisons than they were last year.”

Morrisons currently stocks 228 Unilever food products – 92 of which had increased in price since October 19. During that time, the retailer reduced prices on 19 of the manufacturer’s products, with average prices rising by 9p (5.4%) to £1.77, according to Brand View data.

Since the Brexit vote, Morrisons has raised prices on 62% of its Unilever food items.

Prices up on 155 of Unilever products

The 12.5% price rise on Marmite was 2.5% more than Tesco had refused just six days previously. Tesco and Asda had put prices up on 155 of their Unilever food and home products. Tesco and Asda reduced the prices of 145 and 215 Unilever products, respectively.

Unilever raised wholesale prices on many of its products as the pound’s falling value meant the cost of products made outside the UK increased. Sterling’s value has dropped almost 20% since June’s Brexit vote – the biggest currency value drop on the global money market this year.

News of the Marmite price hike followed an investigated by our sister title The Grocer​.

Meanwhile, Unilever reported 3.2% growth in underlying sales on October 13, in its third-quarter trading update. Since January, the manufacturer said its sales had increased by 4.2%.

Marmite prices hit the headlines

  • Morrisons raises price of Marmite by 12.5%
  • Marmite sales up £335,000​ this month due to Tesco row
  • Row resolved between Tesco and Unilever, companies confirmed
  • Unilever products temporarily removed from Tesco online store
  • Unilever row with Tesco over proposed 10% price increase​ on its products, including Marmite

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Products made in UK

Posted by Clive Teobald,

Since both Marmite and Colmans Mustard are food products manufactured in the UK (Burton and Norwich) do we assume that the raw materials are 100% imported or the factories are so under invested that no increase in efficiency is possible to offset material costs. Or could it be that Unilever is Dutch and part of the EU? This would suggest ALL EU food products are about to increase in cost? Time for Unilever's competition to stepup to the plate and increase production and marketing and consumers to buy alternative products...DO IT !!

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Champions of the Consumer???

Posted by Steve R,

Pretty sure I heard one commentator recently talking about Tescos role being the consumers champion, challenging supplier prices increases, trying to minimise the impact on their consumer in the event of events such as Brexit. Looks like Morrisons have just passed a much highlighted price increase straight on to the consumer. Not much of a champion in my view.

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