Nestlé In Talks To End Supermarket Price Row
Nestlé is said to be in negotiations with purchasing group AgeCore, which is seeking better supply terms for a number of supermarkets, including Colruyt and Coop Switzerland.
Reuters reports that the Geneva-based group, which represents six retailers across Europe, is threatening to cut 160 Nestlé products from its members' stores unless the consumer goods giant agrees to better supply conditions.
According to Retail Detail, Belgian retailer Colruyt has already removed at least 18 Nestlé products from its shelves because the groups have failed to reach a deal over pricing, while Coop Switzerland has temporarily halted orders on more than 150 products, including Cailler Perle chocolate, Nescafé Azera coffee, and Buitoni pizza.
Nestlé said on Wednesday that it regrets consumers could not currently access its products in some stores in Europe, but that the company will continue negotiations and hopes to find a solution soon.
Last week, Nestlé posted lukewarm full-year results, with sales rising by 0.4% to CHF 89.8 billion, but profits taking a 16% drop. The company is now under shareholder pressure to boost sales and improve this profit margin.
Nestlé has already made moves to embrace premiumisation as a means to counter sluggish growth in some categories.
However, retailers are increasingly looking to keep prices down, as competition and the threat from online retail continue to grow.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.