According to an insider report, food retailer Edeka has ended its price dispute with the US group Mars. Many well-known brands are now set to return to the shelves – but probably not all.
Edeka customers have had to do without products from the brand manufacturer Mars for many months. Because the supermarket chain could not agree on delivery conditions with the US group, the items were completely removed from the range. Now the one and a half year-long price dispute is apparently coming to an end: According to an insider report in the “Lebensmittel Zeitung”, the parties are about to conclude a new delivery contract.
Edeka and Mars have not yet officially commented on this. But the usually well-informed industry newspaper reports that only the final details of the new contract remain to be clarified. Edeka will then order goods from Mars again in all categories – but probably to a much smaller extent than before. Edeka only wants to order around half of the ranges that the retailer offered before the price war, reports the “Lebensmittel Zeitung”.
Edeka and Mars in a power struggle over prices
Mars not only produces chocolate bars, but also many well-known brands in other categories. Some of the most well-known products include Whiskas and Sheba pet food, Airwaves and Wrigley’s chewing gum, Miracoli pasta and Ben’s rice. In total, Mars offers around three dozen brands in Germany.
Brandt, Nescafé & Co.
These manufacturers are behind the Aldi brands
The power struggle between the global food giant and the German retailer with the highest sales made waves last year. According to reports, Mars had demanded around 20 percent higher prices from retailers, which Edeka did not want to pay. Other German grocery chains also engaged in tough price negotiations with Mars and other international brand manufacturers. Rewe boss Lionel Souque publicly denounced the price increases by brand manufacturers in interviews.
The fronts between Edeka and Mars were particularly hardened. Edeka had partly filled the gaps in the range with its own brands and other alternatives. However, the delivery stop affected around 450 products. Ultimately, the suffering became too great for both sides.
Source: Stern
