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News Price Negotiations

Bel and Lactalis boycotted by major German supermarket

24 December 2021 - Wouter Baan - 1 reaction

Edeka has removed two Bel and Lactalis dairy products from its range. The market leader among supermarket chains in Germany finds the demands made by the dairies in terms of price too much.

Edeka believes that Bel and Lactalis are aiming too high for the new contracts, which will apply from 2022. It is remarkable that customers are proactively informed about this. Images of placards are circulating on the internet, indicating that Bel and Leerdammer are being unreasonable in the price negotiations. Edeka reports that the products will only be returned to the shelf if the price is 'right for everyone'.  

Increasing prices
Dairy prices have risen sharply in recent months. The DCA foil cheese quotations for Gouda and Edam have increased by 40% in recent months. Such high increases apparently hurt the chain. Other dairy products, such as milk powder and butter, are also significantly higher. 

Earlier this month, Edeka also announced that it would also remove all PepsiCo products from the shelves. This is also a price conflict. In addition, the supermarket chain is currently also in a dispute with cosmetics group L'Oréal, in which about 150 products have been removed from the shelves.

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
1 reaction
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Ronnie 24 December 2021
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/melk/artikel/10895896/bel-en-lactalis-geboycotted-door-grote-duitse-super]Bel and Lactalis boycotted by large German supermarket[/url]
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