Edeka wants compensation from cornflakes manufacturer Kellogg
Whether cornflakes, "Froot Loops" or "Smacks": the dispute between the supermarket chain Edeka and the US manufacturer Kellogg over higher delivery prices for well-known breakfast cereals is coming to a head. Claims for damages have been made against the company, Edeka announced in Hamburg.
This is intended to compensate for lost earnings and customer losses. In the food industry, Kellogg's breakfast cereals are regarded as a brand whose products many customers absolutely want - if they cannot be bought in a supermarket, they go elsewhere and do all their shopping there.
The cooperative did not want to comment on the amount of the claim for damages, but according to "Lebensmittel Zeitung" it initially amounts to around 10 million euros. This amount could rise to 34 million euros by mid-2024 if Kellogg continues to fail to deliver.
Food retailer puts up a fight
According to Edeka, Kellogg wanted to increase prices by up to 45 percent. According to reports, the supermarket chain partially accepted the demands, but Kellogg did not resume deliveries - although Edeka believes this should have happened. Now the food retailer is bursting at the seams. "We are continuing to defend ourselves against the business practices of some international branded goods manufacturers and are fighting for fair prices on supermarket shelves," said Edeka boss Markus Mosa.
A dpa inquiry to Kellogg initially remained unanswered. The dispute is also about Pringles potato chips, which play a minor role in the dispute. They are nowhere near as strong a shopping magnet as Kellogg's cereals.
In addition to the claim for damages, Edeka complained about the cornflakes manufacturer to the Federal Cartel Office some time ago. According to Edeka, the US-Americans have an obligation to supply due to their dominant market position in the breakfast cereals range. A spokesperson for the Bonn authority was cautious. "We have received the complaint," he said. "We have not yet decided whether we will investigate the allegations." In a next step, the competition authorities could ask the US company to make a statement - whether the authority will do this remains to be seen.
- The dispute between Edeka and Kellogg also impacts the retail trade of other food products, such as Pringles potato chips, which are not as popular as the breakfast cereals.
- Edeka is not only seeking compensation for the alleged unfair delivery price increase but also advocating for fair prices on grocery shelves in the retail trade industry.
- The escalating dispute between Edeka and Kellogg could see the supermarket chain claiming up to 34 million euros in damages if the cornflakes manufacturer continues to fail in delivering their products.
Source: www.dpa.com
