Sainsbury’s chief executive Mike Coupe has said suppliers should mitigate any increased cost pressures caused by Brexit through their supply chain, the Guardian has reported.
Coupe was speaking in context of the recently-reported price rise demands from FMCG giants such as Unilever – whose recent spat with Tesco about marmite prices saw the brand briefly removed from the Tesco website.
He suggested major suppliers should take the hit on any cost increases from the falling value of the pound, rather than passing them onto retailers and consumers, the Guardian said.
He said these international firms, such as PepsiCo and Unilever, are more profitable than the retailers they supply. “I would encourage them to mitigate cost pressures they might feel through their supply chain,” he told the paper.
Sainsbury’s this week announced its interim results, with like-for-like sales falling by 1.6 per cent during the 28 weeks to 26 September 2016.
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