Carrefour In Dispute With Noodle Giant
Published on Dec 20 2010 10:24 AM in Retail
French retailer Carrefour has found itself involved in a price dispute with Chinese food and beverage maker Tingyi Holdings, one of the foremost instant noodle producers in the world, which has resulted in the cessation of shipments of its popular Master Kong noodle range to Carrefour stores across China.
Taiwan-based Tingyi Holdings told the Hong Kong Stock Exchange in October that due to raw material price increases, it was to raise the retail price of its products by 10 per cent. However, Carrefour rejected the price hike, and subsequent orders at the original price were not fulfilled.
A spokesperson for Carrefour noted that the rejection was due to a need to "stabilize prices", however a spokesperson for Tingyi holdings noted that "Master Kong is not the only brand that has raised prices. Carrefour didn't object to others, so why object to Master Kong?" (20 Dec)
© 2010 - ESM: European Supermarket Magazine