China’s leading grocery retailer Lianhua Supermarket has stopped selling all biscuits made by Kraft Foods in its over 4,900 stores across China.
Affected brands include Pacific, Oreo and Nabisco. When asked whether the action was prompted by Kraft failing to reach a revenue-share agreement demanded by Lianhua, the retailer refused to comment.
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However, Kraft told just-food it is actively seeking solutions to the problem with the retail giant. “We look forward to reaching constructive agreement with Lianhua,” said Shanghai-based spokesperson Fei Che.
She added that since Lianhua recently expanded its retail network, “we believe we can work together to provide our products to Chinese consumers. Ultimately, our focus of delivering better value will benefit the growth of both Lianhua and Kraft Foods China.”
Shanghai-based Lianhua invested about CNY600 million (USD90.3 million) during the second half of 2010 to open 500 stores in China, including convenience stores and hypermarkets, to compete against foreign rivals such as Wal-Mart.
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By GlobalData
