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.

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.

Germany'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.