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September 4, 2018

German retailer Kaufland pulls 480 Unilever products in price spat

Germany-based supermarket chain Kaufland has pulled 480 products from its shelves manufactured by food giant Unilever after the Anglo-Dutch firm tried to "dramatically" increase prices.

Germany-based supermarket chain Kaufland has pulled 480 products from its shelves manufactured by food giant Unilever after the Anglo-Dutch firm tried to “dramatically” increase prices.

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Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
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Kaufland – part of the Schwarz Gruppe, the owner of the discount chain Lidl – said in a statement today (4 September) that the affected food and drink items include Ben & Jerry’s and Magnum ice cream, the Knorr brand, Bertolli cooking oils, and Lipton teas.  

The retailer added that it found the attempt to raise prices unacceptable and has, until further notice, taken other Unilever products off its shelves, listed as home and personal care products Domestos, Dove and Axe, along with the brands Mondamin, Pfanni, Unox, Coral and Viss.

While 480 products have been pulled in Germany, Kaufland said it has halted orders, as a “first step”, in the Czech Republic, Slovakia, Croatia, Poland, Romania and Bulgaria.

Andreas Schopper, head of purchasing at Kaufland Germany, said the increases sought by Unilever prevented the retailer from offering its customers high-quality products at the right price. Despite pulling the affected items, Kaufland said it believes it has “many attractive alternatives” to offer customers from its strong brand names and private-label products. 

Unilever had not responded to a request for comment by just-food at the time of publication.

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Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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