Kellogg’s classic corn flakes are less available at a supermarket chain. Edeka does not want to participate in the price increases.
Whether Smacks, Frosties or the classic cornflakes – Kellogg’s breakfast cereals are part of many people’s daily breakfast. However, you will soon no longer be able to buy them from the Edeka supermarket chain: the two companies have fallen out over different price expectations.
This is what the “Lebensmittelzeitung” reports. “Kellogg is deliberately allowing things to escalate and has stopped deliveries,” an Edeka retailer told the newspaper. The supermarket chain had previously refused to go along with the manufacturer’s price increase.
Kellogg wanted a drastic increase
The new demands were “exorbitant,” the retailer said. According to the newspaper’s information, Kellogg is said to have suddenly charged 45 percent higher purchase prices. Rewe had already taken this step at the end of last year, and Kellogg products have no longer been sold there since then.
The battle between supermarkets and food companies is not only raging on the breakfast shelf. “We currently have 17 companies that do not supply us,” said Edeka CEO Mosa in April, according to “Wirtschaftswoche”. He spoke of the “greed” of the corporations, which made ever higher demands despite falling energy prices. “We can understand them even less than last year.” In addition to Kellogg, the company would also be in conflict with Proctre & Gamble, the Mars Group, Pepsi and parts of Henkel and Unilever. The pattern is always the same: “We are clearly moving in such a way that the branded goods industry maximizes its results and prefers to forego deliveries.”
Others follow suit
Other chains such as Kaufland, Globus and Tegut are said to have followed the new prices, reports the Cologne “Express.” They also pass some of the costs on to the customers: the price of Kellogg cereals there has increased by almost 20 percent.
It remains to be seen how big the impact of the Edeka blockade will be for Kellogg. According to the Express, cereal sales fell 13 percent in the first quarter of the year.