Discussions about pricing between German supermarket chain Rewe and confectionery multinational Mondelez are leading to empty shelves in stores: the manufacturer is halting deliveries to increase pressure on the negotiations.
Price increases
Products from brands such as Milka, Oreo and TUC are becoming scarce in the supermarkets of Germany’s runner-up, various media report. Mondelez reportedly wants to implement price increases, which Rewe rejects. To add pressure to negotiations, the American multinational seems to have halted deliveries. The two parties involved do not communicate about the conflict, but franchisees of Rewe are not happy with the course of events.
Last year, Mondelez fought a similar dispute with Colruyt in Belgium, and recently there was also disagreement with Jumbo in the Netherlands. Trade relations between brand manufacturers and retailers seemed to have improved somewhat recently: indeed, most manufacturers have indicated that large price increases are now a thing of the past. But specifically for cocoa – a crucial ingredient for Mondelez – prices are currently going through the roof, due to crop failures combined with growing demand for chocolate.
