The food group Nestlé and a group around Germany’s largest grocery retailer Edeka have settled ir months of dispute over rebates and purchase conditions. A “balanced agreement” was found, said a Nestlé spokesman, without mentioning details. The customers would find products of Swiss group “very quickly” on shelves of markets, which belong to purchasing cooperative AgeCore.
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Edeka also confirmed agreement. Previously, food newspaper had reported that details of agreement had been agreed to remain silent.
Edeka had allied with European partners such as Intermarché, Coop or Colruyt to force Nestlé to make concessions in terms of prices and conditions, reby reducing its costs in purchasing. Toger, members of Purchasing alliance, according to previous information, handle approximately two billion euros in sales with Nestlé.
According to newspaper, European trading companies were involved in alliance with an annual gross sales of 140 billion euros. In dispute, Edeka had taken step by step Nestlé products from sale. Among best known Nestlé brands are Nescafé, Maggi, Thomy, Wagner and Vittel. The approximately 200 Nestlé products affected by boycott could be re-ordered from now on, it was said.
Enormous price pressure
As part of regular price negotiations between dealers and manufacturers, temporary product listings are nothing unusual. Manufacturers also sometimes stop ir deliveries. For example, in summer of 2015, customers of supermarket chain Real had been looking for many products in vain, including those from Dr. Oetker, Nestlé or Müller milk.
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In a conversation with time online, Düsseldorf competition specialist Christian Wey had mentioned enormous price pressure as a reason for dispute with manufacturers. “The profit margins are not particularly lush, especially due to intense competition with discount stores,” said Wey. Nestlé Seizwar is a classic brand provider. “But it is precisely through private brands of disco under and or retail chains that such suppliers are also more in distress.”
