Procter & Gamble has notified trade sources that it intends to cut the price of its concentrated laundry detergent brand Ariel.
The move, which should happen in the next few weeks, is likely to be matched by Lever Brothers on Persil.
The news comes as Sainsbury’s and Tesco cut the price of their own-label washing-up liquids in retaliation for P&G’s nine per cent cut in the price of Fairy Liquid.
It is understood that P&G is planning a six per cent cut to bring Ariel’s price just above own-label rivals.
The one-litre versions of Ariel and Persil are available in supermarkets at 2.99. Own-label rivals, such as Tesco and Safeway, retail at 2.79. There is currently 20p difference in price.
The moves are intended to halt the kind of price promotions going on at Sainsbury’s with Novon at the moment. Sainsbury’s is promoting a two-litre version of Novon at 4.79 which allows consumers to get another two-litre version at half-price.
P&G and Lever were unavailable for comment as Marketing Week went to press.