This article first appeared on RTL.de.
The price war between the manufacturers and the supermarkets is becoming increasingly fierce. After the dispute between Coca-Cola and Edeka is now being taken to court, the US manufacturer Mars is taking on Germany’s largest supermarket chains: after Edeka and Netto, Rewe is no longer supplied with goods either. And it’s not just about confectionery. The food manufacturer offers around 300 well-known brands.
As the “Lebensmittel Zeitung” reports, the US food giant Mars has stopped deliveries to Edeka and Rewe. The discounter Netto also belongs to the Edeka Group and the discounter Penny to the Rewe Group.
The manufacturer has been at odds with Edeka and Netto for around three months. The fronts are apparently so hardened that Edeka even leads the dispute via Instagram and sends a clear message to customers: “Don’t feel like moon prices from Mars?” – the declaration of war on the manufacturer could not be clearer.
The food manufacturer Mars did not want to get involved in the Instagram swipe. “Please understand that we do not comment publicly on negotiations with our trading partners,” explained Mars when asked by RTL. “We are aware that such negotiations can be challenging and that many factors play a role. We value the business relationship we have developed with each and every trading partner,” it said.
But now the first bridges are being torn down: As the “Lebensmittel Zeitung” reports, the US group has also imposed a delivery stop on Rewe. And it’s obviously not just about a few chocolate bars, but about the manufacturer’s entire range. The “Lebensmittel Zeitung” quotes Rewe circles, according to which the warehouses are slowly emptying. The gaps in the shelves in the various product groups are also becoming more and more visible.
The Mars empire includes candy brands like M
Mars confectionery boss Carsten Simon told the “Lebensmittel Zeitung” that the company “urgently needs a second price increase this year” due to cost increases. The manager was critical of the tough approach taken by German retailers. Nowhere else are there “such violent clashes”.
Apparently the bosses of Edeka and Rewe have a completely different opinion. “Many come and announce price increases of ten percent and say Rewe should pass this on to the customer. That’s totally unrealistic,” said Rewe boss Lionel Souque. “When you hear a supplier say to us that he wants 30 percent more in Germany and five percent more for the same article in France, then I wonder where the logic is,” explained the Rewe boss.
Competitor Edeka has also warned its suppliers against excessive price demands. “Food must not become a luxury good,” said Edeka boss Markus Mosa.
The criticism was aimed primarily at listed companies such as Unilever or Danone, which are making decent profits despite the global crisis. However, Mars is family-owned and does not have to publish any figures. Apparently, the manufacturer sees itself well-armed for the next round in the price battle. In any case, the customers of all parties involved would be happy about a quick agreement. People will have completely different concerns in the fall.
