Brexit Fallout Spreads to Britain's Famous Marmite
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Business38 FRIDAY, OCTOBER 14, 2016 Amazon adding 120,000 workers to meet holiday demand NEW YORK: Amazon.com will add 120,000 seasonal work- ers in an effort to meet an expected spike in demand dur- ing the holidays. The seasonal positions will be created at fulfillment centers, sorting centers and customer service sites in 27 states. The move marks a 20 percent boost from the 100,000 seasonal hires a year ago. Last year, the company said it transitioned 14,000 seasonal positions to regular, full-time jobs and it expects to boost that figure this year. The e-commerce giant saw its fourth-quarter profit in 2015 more than double on higher demand from online shoppers during the holiday season. — AP Delta beats 3Q profit forecasts LONDON: Jars of savoury spread ‘Marmite’ which is owned by the Anglo-Dutch multinational Unilever, on sale in a ATLANTA: Delta Air Lines Inc. (DAL) yesterday reported third- branch of Tesco yesterday. — AP quarter profit of $1.26 billion. On a per-share basis, the Atlanta-based company said it had profit of $1.69. Earnings, adjusted for non-recurring costs, came to $1.70 per share. Brexit fallout spreads to The results surpassed Wall Street expectations. The aver- age estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.65 per share. The airline post- Britain’s famous Marmite ed revenue of $10.48 billion in the period, falling short of Street forecasts. Four analysts surveyed by Zacks expected $10.59 billion. Delta shares have declined 23 percent since the A squeeze in revenues beginning of the year, while the Standard & Poor’s 500 index has risen roughly 5 percent. The stock has declined 19 percent LONDON: The pound’s Brexit-fuelled European Union. “Brexit has been a said in a client note. in the last 12 months. — AP slump is unsettling food giants, who are trigger (for Unilever’s move) and it is “Results show that faced with cur- facing a squeeze in revenues as higher likely that other (food) companies rency devaluation in Latin America, product prices hit consumers in the which are reporting in euros, including Unilever did just that, with prices up pocket. Britain’s biggest retailer Tesco the likes of Nestle and Ferrero, will fol- 15.5 percent. Consumers kept buying yesterday stopped sales of top Unilever low suit,” she said. though, with volumes declining just brands, including the distinctive Releasing stagnant third-quarter fig- five percent.” Marmite spread well known for its “love ures Thursday, multinational Unilever Hyett added: “Tesco may choose to it or hate it” advertising campaign. acknowledged it was a “tough market” stand its ground on pricing, but history Britain’s media seized on the globally. “But in the UK, which is about suggests that if other retailers can announcement, with the BBC running a 5.0 percent of our global turnover, stomach the increase, consumers will live report on #Marmitegate and the prices should start to increase to recov- be willing to stump up to get their front page of the free Metro daily er higher cost of imported materials Unilever fix.” splashing with the headline “Marmite from the weaker sterling,” chief finan- In London deals, Tesco’s share price wars”. It also lit up social media. “Maybe cial officer Graeme Pitkethly told a con- was down 2.19 percent at 196.80 Tesco should have been sourcing their ference call. pence, while Unilever shares shed 2.26 stock from Uni-remainer? Just a Unilever refused to comment on its percent to 39.81 Euros in Amsterdam. EU auditor wants better thought. #brexit #marmitegate”, Sara relationship with Tesco, while the “The flare-up does show that pressures accounts to improve Robinson tweeted. supermarket chain said: “We are cur- are building in the consumer sphere Jars of Marmite were “currently not rently experiencing availability issues following the Brexit vote and they are citizens’ trust available” in the online store of Tesco, on a number of Unilever products. We likely to persist,” said City Index analyst the world’s third biggest supermarket hope to have this issue resolved soon.” Ken Odeluga. BRUSSELS: The European Union’s top auditor says chain said after reportedly refusing “Unilever is legitimately trying to off- the EU and its institutions need to revamp and Unilever’s request to hike prices by 10 Rising costs set some of the revenue declines and improve financial governance to counter the distrust percent. Other products made by Analysts said Tesco, whose chief input cost rises that are a direct conse- among its citizens. Dutch group Unilever, including PG executive Dave Lewis is a former quence of sterling’s collapse over the The European Court of Auditors signed off on the Tips teabags and Ben & Jerry’s ice Unilever executive, would be reluctant last few months. “But Tesco is loath to EU’s accounts of 2015 and said that even if the level of cream, were also unavailable through to hike prices as it battles fierce compe- put a 10-percent jump in Unilever prod- errors on expenditures had again gone down, to 3.8 Tesco, but it was the sudden absence tition with German-owned discounters uct prices in front of its customers whilst percent, there was still much room for improvement. of Marmite that prompted a national Aldi and Lidl-and traditional supermar- a price war is raging with rivals.” And the Court’s president, Klaus-Heiner Lehne, said furore. ket rivals Asda, Morrisons and Marmite, a thick dark-colored salty that “people cannot even begin to trust us if they do Pinar Hosafci, senior food analyst at Sainsbury’s. spread, first hit the shelves more than a not believe we are looking after their money properly.” consultancy Euromonitor International, “Attentive investors should not be century ago from a factory still operat- For years, anti-EU parties have targeted wayward said Unilever was being hit by the surprised at Unilever’s demand that ing in England. Made from spent brew- EU spending and sometimes outright fraud. On pound’s slump, which has tumbled to Tesco pay 10 percent more for its prod- er’s yeast, Marmite is usually spread on Thursday too, the UKIP party that boosted Britain’s EU 31-year lows against the dollar and 7.5- ucts following the devaluation of the toast although its makers suggest using exit vote, said that the EU has “obviously lost control year troughs versus the euro since pound,” Nicholas Hyett, equity analyst it as an ingredient for dishes such as of the money tap.” — AP Britain voted June 23 to exit the at Hargreaves Lansdown stockbrokers, bolognese and stir fry. — AFP.