German retail group Metro has delisted Kellogg’s products from its domestic stores after the cereal giant tried to pass on rising commodity costs as price increases.
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The dispute is one of the first high-profile wrangles between a retailer and brand-owner in Europe as rising raw material costs continue to bite.
Metro, which owns Metro cash-and-carry, Real and Extra outlets in Germany, said Kellogg’s bid to pass on costs to the retailer was “unjustified”.
“Kellogg’s wanted price increases that were not acceptable for us,” a Metro spokesman told just-food today (10 October). “[Kellogg’s] idea of price increases was absolutely not justified.”
Just-food understands that Kellogg’s products will not be available at Metro stores from later this month. Talks between the two sides, however, could restart at a later date.
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By GlobalDataGermany’s retail sector is renowned for its competitiveness. Discounters like Aldi and Lidl account for just over 40% of sales meaning that the likes of Metro would be wary of passing on rising supplier costs to consumers.
Officials at Kellogg’s could not be reached for immediate comment.
