Edeka & Nestle reach agreement to settle long-standing retail dispute
Category: #retail  By Paroma Bhattacharya  Date: 2018-05-06
  • share
  • Twitter
  • Facebook
  • LinkedIn

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.



About Author

Paroma Bhattacharya

Email: [email protected]   

Paroma Bhattacharya

Paroma currently works as a content developer for Algosonline, MSF and a series of alike platforms. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched ...

Read More

More News By Paroma Bhattacharya

Outlook Therapeutics finishes patient registration for NORSE 1 trial
Outlook Therapeutics finishes patient registration for NORSE 1 trial
By Paroma Bhattacharya

  • NORSE 1 has registered a sum of 61 patients from nine different sites in Australia.
     
  • This study is first of the two current, well cont...

Lidl orders suppliers to pay duties on goods crossing Brexit borders
Lidl orders suppliers to pay duties on goods crossing Brexit borders
By Paroma Bhattacharya

  • The company has asked the British suppliers to pay any import tariffs levied on goods crossing borders after Brexit.
  • The current company contract c...

Bio-Thera Solutions commences Phase 1 study for Simponi® biosimilar
Bio-Thera Solutions commences Phase 1 study for Simponi® biosimilar
By Paroma Bhattacharya

Bio-Thera Solutions, a China based pharmaceutical company, has reportedly announced the start of dosing of its first batch of healthy volunteers in order to compare the safety and pharmacokinetics of BAT2506, proposed ...