The United Kingdom is facing a Marmite shortage and the Brexit is to blame.
Marmite is a spread created from yeast extract. It is a popular item in the United Kingdom and is made by Unilever plc (ADR) (NYSE:UL,UN). The Brexit has caused prices to increase as the British pound has decreased in value.
Tesco is the largest retailer in the United Kingodm and it regulatory stocks Marmite. However, a price argument between it and Unilever has been keeping the spread and other items off of its shelves. Other companies are also looking at increasing prices in the area due to the Brexit vote.
“Tough price negotiations are a constant factor of the relationship between food manufacturers and retailers, and are going to be very tough in the U.K. following the Brexit vote,” Andrew Wood, a Sanford C. Bernstein analyst, told Bloomberg. “But they rarely break out in public or lead to de-stocking of manufacturer products.”
However, it appears that citizens living the United Kingdom are in luck. Tesco and Unilever reached an agreement on Thursday that will end the Marmite shortage and bring it back to store shelves.
The Marmite shortage in the United Kingdom resulted in many citizens making complaints online. One user also made what appears to be a satirical post on eBay Inc (NASDAQ:EBAY) about the product. They are asking $4.78 million for a jar of the spread and claim it may be “your last ever Marmite.”