Marmitegate is OVER! Tesco comes out on top as Unilever withdraws blanket price rises for 200 top brands after threats of a boycott by shoppers
- Unilever stopped delivery of 200 products including Marmite to Tesco
- Supermarket refused 10 per cent price hike put forth by multi-national
- Anglo-Dutch giant blamed increase on post-Brexit pound slump
- Products such as Marmite, Flora and Surf are not available on Tesco online
- They will not be restocked once products are gone from store shelves
- Other supermarkets are believed to be in discussion with Unilever
- Critics claim Unilever is 'exploiting customers' and 'using Brexit as excuse'
- Shoppers are calling for a Unilever boycott in a bid to 'take back control'
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Marmite, PG Tips, Hellmann’s and other family favourites will go on sale again at Tesco after manufacturer Unilever withdrew blanket price rises following threats of a boycott by shoppers.
Anglo-Dutch consumer goods manufacturer Unilever retreated amid widespread outrage after it blamed Brexit for a 10 per cent price rises on dozens of brands.
It is a humiliating climbdown for the firm, whose share price lost £3bn in the furore.
The company was accused by supermarket insiders of using Brexit as a smokescreen to justify the price rises after it claimed a fall in the value of the pound had put up the cost of imported products and ingredients.
But Tesco called its bluff over the ‘take it or leave it’ ultimatum to pay an extra 10 per cent for its products. It said it reached a 'satisfactory' outcome with Unilever tonight.
Hinting that it had not been forced to adhere to the 10 per cent price rise, the supermarket said: 'We always put our customers first and are pleased it has been resolved to our satisfaction.' A spokesman said products would be re-stocked 'soon'.
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Anglo-Dutch consumer goods manufacturer Unilever retreated amid widespread outrage after it blamed Brexit for a 10 per cent price rises on dozens of brands including Marmite
Outraged shoppers threatened to boycott Marmite and other Unilever products over the hikes
An empty Marmite shelf in Clerkenwell, London, after shoppers stocked up on affected items
In a statement, Unilever said: 'Unilever is pleased to confirm that the supply situation with Tesco in the UK and Ireland has now been successfully resolved.
'We have been working together closely to reach this resolution and ensure our much-loved brands are once again fully available.
'For all those that missed us, thanks for the love.'
Supplies of top brands including Marmite, Flora, Persil and PG Tips had been halted to the supermarket chain after Tesco refused to agree to a 10 per cent price rise.
MPs blamed Pro-EU Unilever for using Brexit as an excuse to hike up prices and momentum quickly grew behind a shoppers' campaign to boycott Marmite.
Sir Gerald Howarth said it was 'outrageous' that the firm would 'exploit' customers in that way while Peter Bone added: 'It is Unilever trying to make more money.'
However, Unilever and Tesco managed to reach an agreement this evening with the manufacturer issuing a statement confirming shelves would soon be-restocked with the 200 top brands it had halted delivery on. It would not confirm whether it had backed down over the price hike but it is thought Tesco came out of the row on top.
Marmite was still in stock in some Tesco branches earlier today but the remaining jars were being snapped up by panicked shoppers fearful of a shortage.
Critics had accused Unilever of using Britain's decision to leave the European Union as an 'excuse to raise prices'.
Sir Gerald said: 'I think it's pretty outrageous that Unilever is seeking to exploit their customers using a fall in the value of the pound.'
Meanwhile, Tory MP Peter Bone told MailOnline: 'It is absurd. Marmite is made in this country from ingredients made in this country.
'To hike like this seems to be price gouging by Unilever. Well done to Tesco for saying, 'on your bike'.
'I think we are going to see a lot of this kind of thing, trying to blame price rises on Brexit.
'If it is made in this country how does the Pound have anything to do with it?
'It is Unilever trying to make more money.
'Tesco have done what is right and if Unilever cannot sell their products then what are they going to do?'
Marmite, Persil and Surf were among the Unilever brands affected by the unusual stand-off
A screenshot taken on the Tesco website shows Marmite is no longer available to buy online
Conservative MP Jacob Rees-Mogg added: 'Unilever has half a point, some of its costs may have gone up, but I think 10 per cent is profiteering.
'They are basically using a story people know about to maximise their profit.
'You would have thought that their customers will be unhappy that they are making the most of the fall in the Pound rather than just maintaining their margins.
'Tesco as so often is doing a fantastic job standing up for its customers. Well done Tesco.'
Tory MP Steve Baker added: 'Tesco will be the people's champions if they stop pro-EU Unilever from taking advantage of families.'
And Labour MP John Spellar asked: 'As Marmite is made in Burton in the heart of the Midlands how does currency change justify Unilever price hike?'
Eamon O'Hearn, the GMB union's national officer for the food industry, said: 'It's very common for suppliers and retailers to renegotiate supply contracts but super-rich companies like Unilever must not be allowed to exploit the Government's chaotic handling of Brexit as an excuse for making workers and shoppers pay the price.
'We will vigorously defend our members in the event that wealthy companies like Unilever seek to recoup increased costs through cuts to terms and conditions.'
Meanwhile, an industry source said: 'Unilever is using Brexit as an excuse to raise prices, even on products that are made in the UK.'
Other customers turned on Unilever earlier today, threatening to boycott products in a bid to 'take back control' from the 'European giant'. Hundreds used #Marmitegate to join the discussion on social media.
'Do we really think Tesco are stuck? They'll go somewhere else now, soap powder is soap powder, people will just get a non Unilever product, same with yeast extract. I'll be sticking with Tesco for sure. I won't be going elsewhere.'
Unilever had blamed Brexit and the falling value of the pound for the price increase, saying it is now more expensive to import ingredients.
The consumer goods manufacturer was among the businesses which warned about the dangers of a Brexit vote before the EU referendum, provoking allegations of scaremongering.
Speaking as Unilever's third quarter results were released today, Chief Financial Officer Graeme Pitkethly said: 'In the UK, which accounts for 5 per cent of turnover, prices should start to increase to cover the cost of imported goods due to weaker sterling.'
Popular food brands including Pot Noodle, Ben & Jerry's ice cream and Chicken Tonight, right, are among those affected
Hundreds of Twitter users shared their anger on social media, calling on others to boycott the Unilever brands
A shopping basket packed with Unilever products at a Tesco store in Manchester but the items are disappearing from shelves
However analysts say many of the products that were involved in the dispute - including Marmite, which is made in Burton-upon-Trent, Staffordshire - are made in Britain with home produced ingredients.
Downing Street refused to get drawn into the row today. A spokeswoman for Theresa May said: 'It's a decision for companies how they market and sell their products.'
But shadow business secretary Clive Lewis said: 'Once again the public are paying the price for Tory failure to make any contingency plans for Brexit.
'This is unlikely to stop at a Marmite shortage - more and more retailers are going to be squeezed by higher import prices in the coming months, as hedging contracts end and the cheaper pound starts to squeeze margins.'
It is understood that Unilever had approached a number of the major retailers in an attempt to increase prices.
Several supermarkets are understood to be embroiled in a row with the consumer goods firm although Mr Pitkethly said some retailers had accepted the new prices.
Unilever products are still available online from other major supermarkets, including Sainsbury's and Morrisons.
The row sparked an online backlash with hundreds of social media users calling on shoppers not to buy Unilever products.
Twitter user Nigel Carter said: 'Boycott all profiteering Unilever products, as if they get away with it others will follow.'
Vaseline, Dove and Comfort are three of the other brands to be pulled from Tesco website as the row continues
Huge loss: Dove was launched by Tesco CEO Dave Lewis during his time at Unilever. Above, screenshot taken today
DUTCH UNILEVER CHIEF ON £9.4M A YEAR AND 'DRASTIC DAVE' WHO LEFT TO BECOME TESCO BOSS
Dave Lewis: Tesco CEO who spent decades at Unilever
Taking a hard line: Tesco chief executive Dave Lewis
Tesco chief Dave Lewis worked at Unilever for over 27 years in various posts before leaving to become CEO of Tesco in September 2014.
Mr Lewis, 51, made the switch to retail after nearly three decades across the floor in consumer goods, largely with Unilever.
One of his greatest successes was launching Dove in 1992, now one of Unilever's biggest brands.
He also spearheaded the 'Real Beauty' advertising campaign for Dove.
His influence at Tesco has been keenly felt, with bold business decisions perhaps adding further credence to his nickname 'Drastic Dave'.
Last financial year, the Yorkshireman engineered one of the greatest turnarounds in Tesco's history.
Mr Lewis's recovery programme resulted in the closure of 60 unprofitable stores since the start of its financial year and the controversial shelving of a further 49 shops.
He also ended Tesco's final salary pension scheme and moved its main headquarters from Cheshunt to Welwyn Garden City in a measure expected to save £250 million.
He authorised the slashing of prices across hundreds of lines within the company in an effort to cope with the emergence of discount stores such as Lidl and Aldi.
Paul Polman: The green-thinking Unilever chief
Ambitious: Unilever CEO Paul Polman with Prince Harry
Paul Polman has been CEO of Unilever since January 2009.
Born and brought up in the Dutch city of Enschede, Mr Polman earned a BA from the University of Groningen in 1977.
Two years later he gained an MA in Economics and an MBA in Finance and International Marketing at the University of Cincinnati.
Mr Polman worked at Proctor and Gamble for 27, starting as a cost analyst in 1979.
He moved up the ranks, becoming managing director of P&G UK, president of global fabric care, and group president Europe.
He then joined Nestle in 2006 as CFO and head of the Americas.
In 2009 Mr Polman was named CEO of Unilever.
The business chief set a target to double its size while reducing its overall environmental footprint, arguing sustainability must be a focus in a world of finite resources.
Mr Polman earns £9.4million a year but says he is 'embarrassed' of his pay packet, the Sun reported. He is reportedly paid £1.3million as a base salary and benefits from substantial bonuses and expenses.
The business veteran is married to wife Kim, with whom he has three sons.
Robert Urbanex Heard posted: 'Marmite made in Britain sourced in Britain and still @Unilever blames Brexit... Boycott Pot Noodle and try super noodles instead'.
And Charlotte added: 'I am going to support our country and boycott #Marmite #Unilever trying to rip us Brits off! Well done Tesco stand your ground!'
Tesco recently boasted that its prices are down by six per cent compared with two years ago, saving average families more than £300 a year.
But bosses have been forced to lay off thousands of backroom staff, move its HQ and abandon the opening of new stores to cut costs.
They are determined not to allow suppliers to dictate price rises that will let budget chains poach customers. Aldi and Lidl do not face the same pressure as mainstream supermarkets as they rely on own-label products rather than big brands.
The row is embarrassing for Tesco chief executive Dave Lewis, who previously held a top job at Unilever for 27 years.
He recently told The Grocer magazine: 'We would be very challenging with anybody who was thinking of taking an exchange rate move to justify a price increase just on the back of that alone.'
Some of Britain's best known brands are supplied by Unilever, which is in dispute with retail giant Tesco
Magnums, another Unilever-owned brands, were also missing from shelves in Tesco, in Old Trafford, Manchester, today
A sign reading 'sorry temporarily out of stock' is displayed on a shelf where Surf washing liquid would be at Tesco
Bryan Roberts, a retail analyst at TCC Global, told The Guardian that Unilever' s attempt to increase prices was not surprising and reflected attempts by a large number of supermarket suppliers to offset cost increases. He suggested there were likely to be more disputes between retailers and suppliers in the coming days.
'A lot of suppliers are seeking to pass on price increases to retailers but in the current environment retailers are increasingly reluctant to take it. They want to keep prices as low as they can to increase their affordability against the competition,' he said.
A source at another supermarket group said Unilever had threatened to cut off its entire supply unless it agreed to an across-the-board price increase of 10 per cent.
He said the retailer would consider banishing Unilever products from its stores rather than comply with the ultimatum.
Unilever was among the businesses which warned Brexit could have a negative effect before the vote in June, provoking allegations of scaremongering.
Chief executive Paul Polman, along with former chief executives Patrick Cescau and Niall FitzGerald and former chairman Sir Michael Perry, sent a joint letter to employees effectively warning them of the dangers of a vote to leave.
It read: 'It is not for us to suggest how people might vote... but in taking this hugely important and irreversible decision, we feel a responsibility to point out that Unilever in the UK, with its thriving operating company, international research centres, factories and global headquarters would, in our considered opinion, be negatively impacted if the UK were to leave the European Union.'
Mr Polman also previously told Channel 4 that a vote to Leave would mean hikes in import duties on items such as dairy products, leading to price rises that would affect consumers.
Citing the example of Wall's Magnum ice cream, Mr Polman warned about trade restrictions, saying: 'Undoubtedly if the UK were to Leave, the conditions will not be as good as if they stay in.'
But MPs have now condemned Unilever, saying the company is using Brexit as an excuse to exploit consumers.
They warn it may damage its brand.
Sir Gerald Howarth told the Daily Telegraph: 'I think it will be very damaging to the reputation of Unilever if they seek to use the fall in the pound to exploit the consumer.
'Clearly products which are not dependent upon imports into the United Kingdom will not be affected by the fall in the value of the pound.
'Consumers will switch to other products where companies aren't seeking to fleece the consumer.'
BUT MARMITE IS MADE IN BRITAIN! WHY IS UNILEVER RAISING THE PRICE OF PRODUCTS MADE IN THE UK?
Made in Britain: Marmite is made in a factory in Burton-upon-Trent, Staffordshire
Marmite is one of several Unilever products made in Britain with home ingredients that the manufacturing giant claims is affected by the falling pound.
However UK-made products are not affected by currency fluctuations in the same way imported goods are, as the same currency is used along the supply chain.
The world's supply of Marmite is made in Burton-upon-Trent, Staffordshire.
One factory produces 6,000 tons of Marmite — around 50 million jars — a year. Only 15 per cent of that goes overseas - the rest is eaten in Britain.
Many of the ingredients used are believed to be made in Britain.
First yeast is pumped into large drums, where it is mixed with water and salt, and heated at 90c for ten hours.
The hop residue (from the beer-making process) is then removed, followed by a spin in a series of centrifuges to remove the solid, bitter cell walls of the yeast.
This is where it starts to acquire its dark brown colour. Any remaining water and alcohol are driven off in a large evaporator and then cooled to turn it into a paste.
The next stage of the process is a closely guarded secret. The special blend of ingredients added to the yeast extract — listed simply as 'spice extracts' on the jar — is as surrounded in mystery as the formulae for Coca-Cola and Kentucky Fried Chicken.
The Marmite factory in Burton-on-Trent, Staffordshire, where the world's supply of the spread is made
The dispute came on a tumultuous day for the pound on the foreign exchanges, which at one point saw sterling lose almost one per cent of its value against the dollar during the course of exchanges in the House of Commons, before staging a rally.
Tesco last week revealed its half-year profits dropped by more than a quarter to £71million after being hit by the sector's price war, although it recorded sales growth for a third quarter in a row.
Shoppers trying to buy any of the some 200 items affected from Tesco's website yesterday were met with the message: 'Sorry, this product is currently not available'.
The deadlock divided shoppers outside Tesco stores across the country today.
Victor Tawil, 65, said: 'To be honest I think it's quite understandable from Unilever's point of view. They have business decisions to make, at the end of the day, so you can see how the value of the pound isn't great for them right now.'
David Ball, 72, from Prestwich, Greater Manchester, said of the Marmite crisis: 'I find it difficult to believe that something that's made in the UK won't be available to buy in the biggest UK supermarket. That's daft.'
Car washer Jiri Corvin, 22, said he would go elsewhere to buy Marmite if it was not stocked in the Tesco store in Prestwich. He said: 'They are going to miss out on the sales. I do like Marmite and I will now buy it somewhere else. It's certainly very strange that something made here will not be on sale in somewhere as big as Tesco.'
Sarah Fort, 55, a postal worker, said: 'I was reading about it earlier and my first reaction was that we've been getting ripped off for our shopping for years.
'I think it's a bit of a nonsense that Unilever is pulling its products. The EU vote sounds like a convenient excuse. I voted to Leave and I'm happy with that.'
Lucy France, 34, receptionist, said: 'I heard about Unilever's decision earlier, and I think customers are the ones who are going to suffer. I'm sure a compromise could have been reached.
'I will still come to Tesco anyway. Obviously if there's something specific missing, I'll get that somewhere else, but I'd still do my main shopping here. I love Marmite and I think it's stupid that something made in the UK won't be on sale here, but I won't be panic buying it. I overheard staff in one of the smaller Tesco stores talking about empty shelves the other day, wondering how they were going to fill them.'
Vic Joyce, 74, from South Queensferry, Edinburgh, said she would stay loyal to Tesco and buy other brands. She said: 'I think Unilever are putting prices up too soon after the pound price has dropped. For once it's Tesco standing up, and saying no to them, good for them.
Married couple Clare and Andy Greathead, 45 and 56, said: 'Most of the products we don't buy anyway, but I think Marmite was the only one that we actually buy.
'If anything Unilever are just trying it on - especially with products like Marmite that are actually made in this country.'
Margaret Russell, 39, a nurse, said: 'It sounds like Unilever are probably being a bit greedy. It depends how much the exchange rate is really affecting them.
Victor Tawil, left, Lucy France, centre, and Margaret Russell, right, all weighed in on the Unilever vs Tesco stand-off
AUDACIOUS EBAY USER ASKS FOR £100,000 FOR 'RARE' JAR OF MARMITE
Entrepreneurial customers are trying to flog jars of Marmite on eBay and Twitter as anxious Tesco shoppers rush to snap up the last spreads from store shelves.
One ambitious eBay seller is asking for £100,000 for a 'used' jar - including postage and packaging.
Another tongue-in-cheek post offers a jar at an asking price of £5,000, more than two and a half thousand times its normal price.
Gail Eitch writes: 'One of the last remaining examples of this fabled product in private hands. Unsealed, it is in the same condition it was when it was plucked from the supermarket shelf.
This cheeky eBay user is asking for £100,000 for a 'used' jar of Marmite, one of a number of shoppers selling their supplies
'Little did I know it would be the last Marmite I ever bought - and now, you, too, can buy your last ever Marmite.'
Another post, which asks for £29.99 for a 125g jar, reads: 'A much loved/hated spread once found in many cupboards across Britain, but following the decision to leave the EU has now become an extremely rare item.
'This rare jar of yeast extract could at least ensure that a family somewhere in the country will receive their recommended daily allowance of the B12 vitamin.'
Another cheeky Marmite fan cleared a central London Tesco out of jars before selling them to hungry office workers. He tweeted a picture of 15 jars and wrote: 'Need #Marmite in Clerkenwell? If you've got the cash, I've got your toast covered.'
'It's not going to make me change my shopping habits though. I will still go to Tesco but just buy other things. Hopefully things will get better and they can maybe reach an agreement. The country's in a bit of a mess at the moment. I voted Remain and I'm not impressed with how Brexit has been handled so far.'
Tesco previously had a significant rift with Premier Foods, the maker of Ambrosia, Oxo and Mr Kipling cakes, in 2011 when the supermarket refused to stock products after the supplier tried to pass on a cost hike.
Former chief executives of Tesco, Sainsbury's, Asda, Morrisons, Marks & Spencer and B&Q all warned ahead of the EU referendum that a drop in the pound - coupled with supply chain disruption - would cause prices to spike.
The Tesco stand-off with Unilever came hours after 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 warned supermarkets would struggle to absorb the rise in the cost of importing goods because of the devalued pound, meaning consumers would face higher prices, The Guardian said.
Speaking at a conference in London on Wednesday, Mr King said: 'Retailers' margins are already squeezed. So there is no room to absorb input price pressures and costs will need to be passed on.'
He added: '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.'
Liberal Democrat leader Tim Farron blamed the Government for the latest row, saying: 'The chaos around Brexit is now hitting our supermarket shelves. This shows the Government don't have a plan or even a clue.'
Earlier this month, a survey by the Food and Drink Federation found that three-quarters of members have reported the cost of ingredients increasing, as well as falling profit margins.
Uncertainty following the Brexit vote has been blamed for the tough trading conditions.
UNILEVER VS TESCO: THE BATTLE OF THE BUSINESS HEAVYWEIGHTS
UNILEVER: THE ANGLO-DUTCH CONSUMER GIANT
Unilever is a British-Dutch multinational consumer goods company co-headquartered in Rotterdam and London.
Its products include food, drinks, cleaning agents and personal care products.
Although its roots date back to the Victorian era, Unilever was formed in 1929 when philanthropic soap-maker Lever Brothers and Holland's Margarine Unie joined up - they both used rape seed oil as their key raw material.
It is the world's third-largest consumer goods company measured by 2012 revenue, after Procter & Gamble and Nestlé.
Unilever owns over 400 brands, but focuses on 14 brands with sales of over one billion euros: Axe/Lynx, Dove, Omo, Becel/Flora, Heartbrand ice creams, Hellmann's, Knorr, Lipton, Lux, Magnum, Rama, Rexona, Sunsilk and Surf.
Their products are found in nine out of every ten UK homes.
They have three global research facilities at Port Sunlight, Colworth and Leeds, as well as manufacturing sites and distribution depots around the UK.
The company boasts annual UK sales of around 2billion euros.
One of the oldest multinational companies in the world, its products are available in around 190 countries.
TESCO: BRITAIN'S LARGEST RETAILER
Tesco is Britan's largest retailer and the third largest retailer in the world measured by profits.
It is the fifth-largest retailer in the world measured by revenues.
It has stores in 12 countries across Asia and Europe and is the market leader in the UK where it has a market share of around 28.4 per cent, Ireland, Hungary, Malaysia, and Thailand.
Originally a UK grocery retailer, Tesco has diversified geographically since the early 1990s and into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol and software. It also offers financial services; telecoms and internet services.
With 3,500 shops of different sizes in the UK, it employs more than 310,000 people in Britain.
Tesco employs more than 500,000 people worldwide.
The 1990s saw Tesco reposition itself; it moved from being a down-market high-volume low-cost retailer, to one which appeals across many social groups.
It did this by offering products ranging from its 'Tesco Value' items (launched 1993) to its 'Tesco Finest' range.
Tesco is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
It had a market capitalization of approximately £18.1 billion as of 22 April 2015, the 28th-largest of any company with a primary listing on the London Stock Exchange.
Uncertainty following the Brexit vote has been blamed for the tough trading conditions.
Why Marmite could be 'thin end of the wedge': Experts warn shoppers could still face more price rises in the New Year
Shoppers could face further price hikes in the New Year
The Unilever price hike could be just the 'thin end of the edge' for consumers, experts warn.
Shoppers could face a surge in prices in the New Year as retailers look to pass on higher costs once the festive season is out of the way, according to Steven Dresser, retail analyst at Grocery Insight.
Retailers are facing rising costs of goods and materials from the plunging value of the pound since the Brexit vote but are under pressure to keep prices low amid an intensely competitive market.
Mr Dresser said the Tesco row over prices with Unilever was a 'pre-cursor' to other moves by suppliers to put up the costs of their products.
He added: 'No one wants to put prices up ahead of Christmas. Others may just wait until January. It's only going to get more painful.' Former Sainsbury's boss Justin King said shoppers should expect a price rise.
Former chief executives of Tesco, Sainsbury's, Asda, Morrisons, Marks & Spencer and B&Q all warned ahead of the EU referendum that a drop in the pound, coupled with supply chain disruption, would cause prices to spike.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said the pricing spat was likely to be the 'thin end of the wedge'.
Supermarkets are already taking a hit amid a fierce price war in the sector sparked off by the rising popularity of discounters Aldi and Lidl.
Consumers have been enjoying four years in a row of falling retail prices, but the pressures of the weak pound is set to bring this to an end.
The British Retail Consortium warned earlier this week that Brexit could leave retailers with no option but to pass on costs to consumers.
It said: 'While UK retailers have been very successful in insulating consumers from the cost of rising business rates and labour, the recent devaluation of the pound in relation to our most important trading currencies is compounding economic headwinds, while years of deflation have left little margin to absorb added cost from import tariffs and administrative burdens.'
Minister wades into Marmite row by urging people to buy 'own brand' alternatives during the stand-off over Unilever price hikes
By James Tapsfield, Political Editor for MailOnline
A senior minister has waded into the Marmite row by urging consumers to buy 'own brand' alternatives during the stand-off over Unilever price hikes.
The multi-national firm is at loggerheads with Tesco after saying the fall in the Pound since the Brexit vote meant it had to increase prices by 10 per cent.
The supermarket has refused to pay the extra, leaving it running short of stocks of popular products including Marmite and Persil.
Leader of the House David Lidington said people could buy 'own brand yeast extracts' during the row over price hikes after the Brexit vote
Unilever is now facing a furious backlash, with many people pointing out that the yeast extract spread is actually manufactured in Burton-upon-Trent.
Leader of the House David Lidington was asked about the government's response to the situation in parliament.
His Labour counterpart Valerie Vaz suggested that party leader Jeremy Corbyn was launching a personal campaign to get Marmite back on the shelves.
Sat next to the veteran left-winger in the chamber, she said: 'This morning I received a text, it's an upgrade from an email, from a 'Jeremy' who says 'we want our Marmite back'.
Mr Lidington replied: 'I am sure that members on all sides of the House will have sympathy for your call to restore our Marmite.
'I think that the best advice I can give to her about her email correspondent is to advise Jeremy that during the current commercial dispute between the wholesaler and the retailer there are a number of own brand yeast extracts that are available.'
Mr Liddington was answering questions in the House of Commons today when the issue was raised by MPs
Amid laughter, he referred to Mr Corbyn's Islington North constituency, saying: 'I'm confident that in an area like Islington there is a wealth of alternatives of both traditional and organic varieties that will be available to the discerning customer.'
Pete Wishart, the SNP's Commons leader, also urged Mr Lidington to take action.
He said: 'Who would have thought that the first casualty of this hard Brexit would be the nation's supplies of Marmite?'
Mr Wishart said it was time for the Government to reconsider its plans for a 'full English Brexit' and opt for a 'more palatable continental Brexit instead'.
Mr Liddington replied: 'I simply note that on the information I have been given this morning the ingredients of Marmite are not imported into the United Kingdom but are manufactured and supplied here.
'I think probably it is not for the Government to intervene in what seems to be a dispute between two commercial companies.'
Love it or hate it, at least it's British! How Marmite has been made in Burton for 114 years - despite being invented by a German scientist and named after a French casserole dish
By Keiligh Baker for MailOnline
As the country reels from Unilever's announcement that it is pulling 200 products from the shelves of Tesco - including Marmite - MailOnline looks back on the history of that quintessentially British spread.
The world's supply of Marmite is made in a factory in Burton-upon-Trent, Staffordshire and the spread, which celebrates its 114th birthday this year, has never been more popular.
That one factory produces more than 6,000 tons of Marmite — around 50 million jars — a year. Only 15 per cent of that goes overseas and the rest is eaten in Britain and 27 jars are sold every minute.
Marmite, which was invented by a German scientist called Justus von Liebig in the late 19th century, has been produced in Burton since 1902.
The world's supply of Marmite is made in a factory in Burton-upon-Trent, Staffordshire and the spread, which celebrates its 114th birthday this year, has never been more popular
The town's beer heritage is important: the basic ingredient of the spread is yeast sludge, a waste product left over from brewing beer, and there were once 30 breweries in the surrounding area. Now, the raw materials come from across the UK.
It is named after a French casserole dish, pronounced 'mar-meet', having first been distributed in earthenware pots. To this day, the jar's iconic red-and-yellow label depicts a Marmite dish.
What started as a wartime staple has recently revamped its reputation — moving from nursery treat to trendy retro brand. Last year, Marmite saw an 11 per cent rise in popularity among the under-30s.
It is named after a French casserole dish, pronounced 'mar-meet', having first been distributed in earthenware pots. To this day, the jar's iconic red-and-yellow label depicts a Marmite dish
Top chefs swear by it in everything from curries to cupcakes, while coffee shop Starbucks has started putting Marmite in its paninis.
And it is only since 2006, when the famous 'love it or hate it' advertising slogan was introduced, that our opinions of the spread have become so polarised.
During World War One, Marmite wasn't seen as an acquired taste at all — it was included in British soldiers' ration packs. And during World War II it was supplied as a dietary supplement in prisoner-of-war camps.
It is also said to have a number of health benefits — from fighting anaemia to healing tissue after heart damage — and until the Sixties was given away free to new mothers by NHS baby clinics because of its high concentration of B vitamins and folic acid.
Many of the ingredients used are believed to be made in the UK - but the process itself remains something of a mystery.
Firstly, yeast is pumped into large drums where it is mixed with water and salt, and heated at 90c for ten hours.
The hop residue (from the beer-making process) is then removed, followed by a spin in a series of centrifuges to remove the solid, bitter cell walls of the yeast.
This is where it starts to acquire its dark brown colour. Any remaining water and alcohol are driven off in a large evaporator and then cooled to turn it into a paste.
Tesco has refused to pay a 10 per cent price rise, prompting Unilever to halt deliveries to the supermarket giant. It means 200 much-loved brands, including Marmite, are no longer available to buy on Tesco's website and will not be restocked in store
The next stage of the process is a closely guarded secret. The special blend of ingredients added to the yeast extract — listed simply as 'spice extracts' on the jar — is as surrounded in mystery as the formula for Coca-Cola and Kentucky Fried Chicken.
Marmite is one of several Unilever products made in Britain with ingredients that the manufacturing giant claims is affected by the falling pound.
However UK-made products are not affected by currency fluctuations in the same way imported goods are, as the same currency is used along the supply chain.
Over the years, Unilever — the company which owns Marmite, having taken over the brand in 2000 — has released a number of special editions, including Guinness-infused spread, a champagne blend and the patriotic Ma'amite in honour of the Queen's Jubilee in 2012.
The most recent version, Marmite XO (an extra-strong version that is fermented for 28 days), was produced with the help of a group of country-wide aficionados, nicknamed The Marmarati, who were recruited via social media for the purpose of tasting new blends.
Although the exact recipe remains secret, the main ingredients are manufactured in the UK including yeast and vegetable extract and spices, and therefore the drop in the pound should have little effect on the cost of production.
The naturally high vitamin concentration means a serving provides between a third-and-a-half of the body's recommended daily requirements of Vitamin B-12, niacin RDA and folic.
Due to its high nutritional value, it was part of ration packs for soldiers during the First World War, and its high vitamin B content is even said to make it an effective mosquito repellent.
Read more: http://www.dailymail.co.uk/news/article-3835034/Major-brands-axed-Tesco-shelves-row-supplier-Unilever-demanded-10-cent-price-rise-falling-pound.html#ixzz4N0NSLTC3
