Edeka & Nestle reach agreement to settle long-standing retail dispute
Category: #retail  By Pankaj Singh  Date: 2018-05-06
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Edeka & Nestle reach agreement to settle long-standing retail dispute

Germany’s largest supermarket chain, Edeka and the renowned Swiss foodstuff producer, Nestle, have reportedly reached an agreement to settle the much-publicized retail dispute the two were entangled in. No details were provided about the content of the agreement, however, a Nestle spokesperson confirmed that an agreement has indeed been reached.

Edeka in alliance with Agecore had been leading a charge against Nestle to offer better trading conditions and prices to retail chains. During the dispute Agecore had threatened to take off up to 200 Nestle products from its aisles unless Nestle met with the demands of offering better purchasing terms.

A Nestle representative reportedly stated that the world’s largest foodstuff producer is glad to welcome the well-balanced agreement, as their priority remains the providing of products that customers love.

Agecore counts the German Edeka, the French Intermarche and Swiss Coop among its members and accounts for 2.8% of the annual $108 billion revenue garnered by Nestle. Edeka’s chief contention was that Nestle offered preferential treatment to its German rivals Lidl and Aldi. Though such disputes over pricing and offers are not unusual in the retail sector, the public nature of the conflict between Edeka and Nestle and its unprecedented escalations coupled with exchange of open threats and accusations brought the dispute to the limelight.

Though Nestle weathered the boycott without suffering much financial loss, the company expressed its concerns that offering too many concessions to Agecore could set an example for other retailers to follow suit and demand cost savings as well. Edeka spokesperson confirmed that they will be switching back to normal operations with Nestle.

The dispute brought to the forefront the tension that is raging among European retailers and suppliers at a time when consumer tastes are drastically changing, and online competition is adding to the pressure. Last year Nestle posted one of the weakest annual sales growth reports in two decades illustrating the hardships of consumer products makers to raise prices in a competitive retail environment.



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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