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Dutch Retailer Jumbo In Dispute With Mars Over Pricing

By Steve Wynne-Jones
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Dutch Retailer Jumbo In Dispute With Mars Over Pricing

Dutch supermarket chain Jumbo is in a pricing dispute with Mars, which has resulted in limited availability of Mars products in Jumbo stores and online, according to local media reports.

RTL Nieuws reported that the two companies are at odds over price negotiations, with Jumbo accusing Mars of setting prices too high, while the supplier said that its agreements with supermarkets go beyond just purchasing products.

'High Price Increases'

"We are confronted with very high price increases from certain suppliers," the news portal quoted a Jumbo spokesperson as saying. "Some price increases cannot be explained to us."

This is not the first time that Dutch supermarkets have had empty shelves due to disputes with suppliers. Last year, for example, Jumbo removed Kellogg's products on its shelves, while Albert Heijn had a falling out with Nestlé, that saw Maggi and KitKat temporarily suspended.

Most FMCG manufacturers have increased prices over the past year to combat cost price inflation, with the continuation of the inflationary situation into 2023 resulting in prices remaining high. Many retailers have responded by upping their investment in private label.

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Edeka Says No

Elsewhere, according to trade publication Lebensmittel Zeitung, Mars' difficulties also extend to Germany, where retailer Edeka has similarly refused to pay higher prices to the consumer goods giant.

The retailer is replacing approximately 450 Mars SKUs with other brands and/or private label, it said.

Jumbo Performance

In January, Jumbo reported that its turnover topped the €10 billion mark for the first time last year, with sales up 3.7% on the previous year.

In a statement at the time, Jumbo's management, said that the 'stormy economic and market developments of the past year have largely determined Jumbo's day-to-day operations.'

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Read More: Dutch Retailer Jumbo Sees Annual Turnover Top €10bn For First Time

© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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