Tesco runs low on Marmite amid price dispute

A major dispute over pricing has led to high street giant Tesco running low on some of Britain's best-known grocery brands.

It is understood that due to the falling Pound, Unilever - a supplier of food, home and personal care products - was demanding the supermarket increase the prices of famous goods by around 10 per cent.

After the supermarket's refusal, Unilever has halted deliveries.

Online customer's are currently unable to buy products, including Ben & Jerry's ice cream, Marmite, Hellmann's Mayonnaise, and Colman's Mustard from the Tesco website.

The items remain available in Tesco stores but stocks won't be replenished when they run out.

ITV News has learned that Tesco is not the only major retailer to have been approached by Unilever with demands for a 10 per cent price rise.

Unilever has declined to comment, but chief executive Paul Polman warned in June that a vote to leave the EU's single market would increase prices for customers.

Liberal Democrat leader Tim Farron blamed the Government, saying: "The chaos around Brexit is now hitting our supermarket shelves. This shows the Government don't have a plan or even a clue."

Hours before the dispute between Tesco and Unilever, former Sainsbury's boss Justin King said shoppers should expect price rises after the fall in the value of the pound since the Brexit vote.

Mr King said supermarkets would struggle to absorb the rise in the cost of importing goods because of the devalued pound, meaning consumers would face higher prices.

Speaking at a conference in London on Wednesday, Mr King said: "No business wants to be the first to blame Brexit for a rise in prices. But once someone does, there will be a flood of companies because they will all be suffering."