Dispute over undelivered goods
Edeka wants millions in damages from Kellogg
November 10, 2023, 7:38 p.m
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The dispute between Edeka and Kellogg is entering the next round. The supermarket chain is demanding financial compensation from the US manufacturer due to a lack of deliveries. The fronts have hardened.
Whether cornflakes, “Froot Loops” or “Smacks”: The dispute between the supermarket chain Edeka and the US manufacturer Kellogg over higher delivery prices for well-known breakfast cereals is coming to a head. Edeka announced in Hamburg that claims for damages had been made against the company. This is intended to compensate for lost revenue and customer losses. Kellogg’s breakfast cereals are seen in the food industry as products that many customers really want – if they are not available in a supermarket, they will go elsewhere and do all their shopping there.
The cooperative did not want to comment on the amount of the compensation claim; according to “Lebensmittel Zeitung”, it initially amounts to around 10 million euros. This amount could rise to 34 million euros by mid-2024 if Kellogg continues to fail to deliver. According to Edeka, Kellogg wanted to increase prices by up to 45 percent. According to reports, the supermarket chain partially accepted the demands, but Kellogg did not resume deliveries – but from Edeka’s point of view, this should have happened.
Now the grocer’s collar is bursting. “We continue to defend ourselves against the business practices of some international branded goods manufacturers and fight for fair prices on supermarket shelves,” said Edeka boss Markus Mosa. A Kellogg spokesman declined to comment on the matter. It’s also about Pringles brand chips, but they play a minor role in the dispute. They’re not nearly as strong a shopping magnet as Kellogg’s cereals.
Separately from the claim for damages, Edeka complained to the Federal Cartel Office about the corn flakes manufacturer some time ago. According to Edeka, the Americans have an obligation to supply because of their dominant market position in the breakfast cereal range. A spokesman for the Bonn authority expressed caution. “The complaint is before us,” he said. “We have not yet decided whether we will investigate the allegations.” In a next step, the competition authorities could ask the US company to comment. It is unclear whether the authority will do this.