'Britain should get used to higher prices after Brexit', warns Unilever boss at the centre of last year's Marmite row
The UK should 'get used to' higher prices in Brexit's aftermath, the boss of the company that makes Marmite, Domestos and Persil warned today.
With the pound remaining at weakened levels, Unilever's chief executive Paul Polman said the company's decision to increase prices in the UK was 'definitely the right one'.
Unilever, which fell under the spotlight during a row involving the cost of Marmite with Tesco last year, has seen its share price fall more than 5 per cent today to 3,178.75p.
Get used to it: The UK should 'get used to' higher prices in Brexit's aftermath, the boss of consumer group Unilever said
Speaking to journalists on a conference call, Mr Polman said Unilever had already altered prices amid 'huge currency swings' in Egypt, Argentina, Brazil and Nigeria, and warned that the UK should expect more price hikes.
He added: 'There's nothing new here, we should get used to that.'
Unilever made headlines last October after it decided to increase prices for some of its key brands, including Marmite, Domestos and Persil.
After imposing a 10 per cent price hike on Marmite, a 24-hour stand-off with Tesco ensued, prompting the supermarket to pull some of Unilever's goods off its shelves.
Tesco boss Dave Lewis took a swipe at global suppliers shortly after the spat, saying price increases should be 'justified' and not be made in an effort to prop up profits so that they look appealing to investors.
But Mr Polman said competitors, including domestic supermarkets, were also increasing consumer price tags.
He added: 'I happen to like French wine, and I noticed that most of the brands that the supermarkets sell themselves have increased and it's not surprising to me because they're paying 20% more for getting this stuff now from France.
'So we shouldn't get too excited about that.'
Hitting the headlines: Unilever made headlines last October after it decided to increase prices for one some of its key brands
In its latest set of results, Unilever's annual pre-tax profits rose to £6.3billion, up from £6.1billion a year earlier.
Revenues fell 1 per cent to £44.7billion, while underlying sales increased by a lower-than-expected 3.7 per cent.
The group said it suffered from severe disruptions from the economic crisis in Brazil and India's demonetisation drive, which saw swathes of banknotes taken out of circulation.
Unilever also said price deflation in Europe continued to weigh on sales in developed markets, which fell 0.2 per cent despite growth in North America.
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