UK food prices to rise as pound drop stirs grocers dispute

Jars of savoury spread 'Marmite' which is owned by the Anglo-Dutch multinational Unilever, on sale in a branch of Tesco in central London, Thursday, Oct. 13,2016. Britain's biggest supermarket chain, Tesco, has pulled cherished products such as Marmite spread and Ben & Jerry's ice cream from its website amid a dispute with consumer goods giant Unilever. (AP Photo/Alastair Grant) (The Associated Press)

Containers of "Ben & Jerry’s", an ice cream brand owned by the Anglo-Dutch multinational Unilever, stand on sale in a branch of Tesco in central London, Thursday, Oct. 13, 2016. Britain's biggest supermarket chain, Tesco, has pulled cherished products such as Marmite spread and Ben & Jerry's ice cream from its website amid a dispute with consumer goods giant Unilever. (AP Photo/Matt Dunham) (The Associated Press)

LONDON – Consumer goods giant Unilever says prices in Britain on cherished items like Marmite spread are likely to rise after the sharp drop in the value of the pound following Britain's decision to leave the European Unison.

But the company's finance chief, Graeme Pitkethly, said Thursday he's hopeful for the quick resolution of a dispute with supermarket giant Tesco that has resulted in stock being pulled from the store's website.

Pitkethly admitted as the company released results that "prices should start to increase to cover the cost of imported goods due to weaker sterling (pound)."

Unilever's reportedly attempted to raise prices after the pound plunged by nearly a fifth against the dollar since the June Brexit vote.

The drop comes as British supermarkets compete fiercely over who has the lower prices.