P&G hammers Tesco for furtive Eukanuba buying

Tesco is embroiled in a dispute over its use of the 'grey' market after it obtained unofficial stocks of Procter & Gamble's Eukanuba specialist pet food.

The decision has angered P&G, which supplies its Iams brand to the multiples but keeps Eukanuba exclusive to pet shops and vets' surgeries. Tesco has sought out the stocks as part of attempts to position itself as a specialist pet-food supplier.

'Procter & Gamble remains firmly committed to exclusively supporting Eukanuba in the pet speciality channel, where owners can receive information about the nutrition and health benefits of these premium products to guide their choice,' said a P&G spokesman.

It is understood that the Eukanuba range has limited availability in 23 Tesco stores across the UK, but that the retailer plans to widen its distribution.

Tesco has landed itself in similar trouble before. In 2001, the supermarket lost a long-running legal battle with Levi's, which prevented the retailer from importing its jeans for sale from the US and selling them at a discount.

Tesco would not comment on the P&G incident.

Leader, page 29.

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