Jumbo, the Dutch supermarket group, is reportedly the latest grocer to reject planned price increases from major food manufacturers.
Reports have suggested price hike proposals from Nestlé and Mars have been rebuffed by Jumbo, resulting in the limited availability of their products on the retailer’s shelves.
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Without specifically referring to a pricing dispute, a spokesperson for KitKat confectionery and Maggi sauce owner Nestlé confirmed to Just Food some of its products are in short supply in Jumbo stores.
“It is true that some of our products are temporarily unavailable at Jumbo as we are currently in negotiation with Jumbo about the renewed collaboration for 2023. We aim to finalise the new agreement as soon as possible,” the spokesperson said.
Roel Govers, Mars’ corporate affairs director in the Netherlands, said the issue is not just about the cost consumers are being asked to pay for products. Govers also indicated the issue, from Mars’ perspective, centred on pet-food lines.
“All aspects of the collaboration – including prices – are part of the contract but it is explicitly not solely about price,” he said.
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By GlobalData“It is in the interest of the consumer, and their pets, that a new agreement is reached as soon as possible. We are committed to this and we hope to soon be able to ensure that they will also find their trusted and valued products at Jumbo again.”
Jumbo refused to confirm or deny the dispute when contacted by Just Food. It said: “We do not make statements about conversations with specific suppliers. That is something between the parties involved.”
However, RTL Nieuws, the Dutch media outlet which first reported the story, quoted Jumbo as saying: “We are confronted with very high price increases from certain suppliers.”
Jumbo reportedly admitted sometimes these increases are unavoidable but added: “Some price increases cannot be explained to us”.
Last month, US retail giant Walmart reportedly drew a line in the sand in front of CPG manufacturers following a series of price hikes to counter inflationary cost pressures.
As far back as last summer, US food major Kraft Heinz halted supplies to Tesco in the UK in a spat over price.
Then in January, Tesco chairman John Allan, speaking in an interview with UK broadcaster the BBC, drew the wrath of the food industry by suggesting manufacturers could be taking advantage of the inflationary environment to increase prices.
Allan said Tesco had “fallen out” with a number of suppliers after “robust” discussions on planned price increases the supermarket had challenged.
The statement sparked outrage amongst manufacturers and industry bodies.
Director general of Provision Trade Federation, Rod Addy accused the Tesco boss of “sabre-rattling”.
