If you were looking for a product from French dairy giant Danone on the shelves of Delhaize or Lidl, you will have noticed that these are no longer available. In question? A price war between distributors and the French group.
“Dear customer, Delhaize wants to offer its products at competitive prices to its customers at all times. Due to difficult negotiations with the supplier, several products are temporarily unavailable. Please accept our apologies for this inconvenience.” Here is the message displayed on the shelves of the distributor at the Lion to justify the absence of Danone products. Other references, such as the Planta margarine brand, are also missing due to negotiations over price increases. “The increases proposed by Danone do not reflect reality. We therefore cannot accept them”…
“Dear customer, Delhaize wants to offer its products at competitive prices to its customers at all times. Due to difficult negotiations with the supplier, several products are temporarily unavailable. Please accept our apologies for this inconvenience.” Here is the message displayed on the shelves of the distributor at the Lion to justify the absence of Danone products. Other references, such as the Planta margarine brand, are also missing due to negotiations over price increases. “The increases proposed by Danone do not reflect reality. We therefore cannot accept them”, justifies Roel Dekelver, spokesman for Delhaize. The Lion brand compares these increases with the prices of other dairy product suppliers and recalls that it has “a wide range of dairy products with sufficient alternatives”. For its part, the French company explains that it is facing unprecedented market conditions and says it is working intensely to “optimize costs and minimize the impact on consumer prices, but it is the retailers who determine the price. end for the consumer”, she concludes. At Lidl too, Danone references are missing from the shelves and Aldi does not hide the fact that negotiations are difficult. “Consumers can still find a few products but very soon they will have to opt for our own brands as an alternative to Danone”, explains Jason Sevestre, spokesperson for Aldi. Discussions between the retail brands and the French group are still ongoing and “are intended to be constructive”. While retailers rarely communicate on trade disputes, they openly position themselves as defenders of purchasing power. Manufacturers, for their part, believe that price increases are inevitable due to the increase in energy and raw material prices. “Retailers do not accept price increases, or only very partially, says Nicholas Courant, spokesperson for Fevia, the Belgian food industry federation. Our companies’ margins are historically low. They will no longer be able to to invest in innovations or will have to produce at a loss, which is unacceptable.” These very complicated pricing discussions were predictable. Manufacturers and supermarket chains negotiated price increases throughout the year. “The system of fixing prices for the year is no longer tenable, adds Nicholas Courant. Inflation is real for everyone.” No supermarket wants to be the first to raise prices and brands always want to buy as cheaply as possible so that they can resell their products cheaper than the competition. On average, prices have already risen by 5% across all chains in the second quarter, notes research firm Daltix. The price war therefore only seems to be beginning and other products may soon no longer be available on the shelves.
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