Food giant Nestle’s row with retailers over pricing is approaching a compromise, according to a report by news agency Reuters.

It reports that the months-long price fight with retailers, including Germany’s largest supermarket group Edeka, appears to be coming to an end but says the outcome of the talks remains unclear.

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It quotes a “source close to the negotiations”.

The Frankfurter Allgemeine Zeitung newspaper has also reported that a tentative compromise had been reached in the talks.

It reported that retailers were demanding, among other things, that Nestle contribute more towards marketing campaigns.

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Earlier this month Edeka escalated the pricing conflict after reportedly urging its stores to drop more of the Swiss company’s products.

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On 5 April local journal Lebensmittel Zeitung cited a letter Edeka sent to its 5,900 supermarkets recommending they stop orders for more Nestle products.

It is understoof Edeka was among six European grocers being represented by Geneva-based retailer alliance AgeCore in a dispute to cut prices which dates back to February. Belgium’s Colruyt and Switzerland’s Co-op are also understood to be involved in the row.

Talks between Nestle and AgeCore have progressed although Reuters’ source warned that they had not yet reached a breakthrough and the discussions could still fail.

Nestle is not commenting on the issue but a source close to the negotiations told just-food: “The deal is not done yet. Nothing is agreed until everything is agreed and there is some way to go.”