Brand name products missing from shelves Retailers and manufacturers clash over prices

Düsseldorf · Manufacturers and retailers disagree on purchase prices, brand-name products are missing from shelves. Which supermarket chains and what products are affected and what is happening behind the scenes?

 Supermarket shoppers have to do without some brand name goods right now. (Symbolbild)

Supermarket shoppers have to do without some brand name goods right now. (Symbolbild)

Foto: dpa/Sven Hoppe

When the pandemic began, there was a shortage of toilet paper and pasta; now it's chocolate and cola: Supermarket and discount store shelves have empty spaces once again. The reason for this is disagreement between manufacturers and retailers. Manufacturers are demanding higher prices for their products because they have to contend with increased costs due to inflation. Retailers, in turn, do not accept this and refuse to buy the products. So they list them as out of stock until a compromise is reached. "In the end, the one who suffers is the consumer, who has to do without many brand-name products," says Gerrit Heinemann, a retail expert from Niederrhein University of Applied Sciences.

Products from Mars are included in this dilemma. The company imposed a delivery stop on Edeka and Rewe, among others. Now not only the well-known Mars, Twix and Snickers chocolate bars are missing, but also products that customers do not associate with the brand at all: Miracoli packs, for example, which can be used to quickly and easily cook spaghetti with tomato sauce, or pet food from Sheba and Frolic. "The current hefty price demands of the manufacturer Mars are not objectively justified from our point of view," writes an Edeka spokeswoman when asked. "In order to forcibly enforce the excessive demands, Mars has imposed a unilateral delivery stop on us for the product areas pet food, basic food, confectionery and ice cream.”

A spokeswoman for Mars explained, "Our industry, like many others, is operating in a volatile environment that is under extensive inflationary pressure. We continue to absorb rising costs internally as best we can, but given the current market situation, some degree of price adjustment is necessary.”

And Mars is not the only supplier with which Edeka is currently at odds. "Many other international brand groups, such as Coca-Cola or Procter & Gamble, are also trying to ride the inflation wave with exaggerated price demands in order to increase their returns, and are using unilateral supply stops as a means of exerting pressure on retailers," the spokeswoman writes. That's why the group banned Coca-Cola, Fanta and Sprite from its product assortment, among others, as well as Milka chocolate. Rewe is dispensing with Kellogg's cornflakes as well as Mars products; Kaufland and Lidl, which both belong to the Schwarz Group, no longer sell Ritter Sport chocolate. At Aldi Süd, cat food, among other things, is missing from the shelves.

This phenomenon is not new. "Many years ago, Tengelmann, for example, already delisted Pepsi because of a price war," says retail expert Heinemann. Food manufacturers have always had a hard time enforcing their conditions and prices, he says. Retailers make a profit with their purchases, and they want to remain profitable. That's why those in charge negotiate as hard as possible, and if the results are not satisfactory, they also mercilessly list out items. This puts the manufacturers under a lot of pressure. But if you look at the figures from the Federal Statistical Office, it is understandable that producers demand higher prices, he said. "Consumer prices for food have risen by around 15 percent. But producers are faced with cost increases of more than 45 percent," Heinemann says. They have to pass these on to their customers, the food retailers, in their price calculations. Otherwise, they are threatened with insolvency.

It could take months for manufacturers and retailers to find compromises. Mars is currently in negotiations with some retail partners, the spokeswoman said. The most important goal, she said, is to make the products available and accessible to all consumers. "For now, however, retailers are pushing their own store brands and offering them as an alternative," Heinemann says. Until, at some point, customers become dissatisfied because they can no longer get their brand items and decide to shop elsewhere. When that time comes, both parties will have to come together.

Original text: Jana Marquardt

Translation: ck