German grocery chain Edeka has confirmed it has submitted a double-digit million claim for damages against US multinational Kellogg.
The retailer is calling for compensation as a result of the impact of halted deliveries.
Edeka declined to reveal the sum of the claim to Just Food, but reports from local business publication Lebensmittel Zeitung suggest it has asked for approximately €10m ($11m) to account for “lost revenue and customers”.
The retailer is said to have filed its complaint to Germany’s Federal Cartel Office in September.
According to the German news site Focus, Kellogg had proposed price increases up of up to 45%. When Edeka refused to accept the price hike, Kellogg stopped delivering its goods earlier this year – a decision the retailer told Lebensmittel Zeitung breaches a “legally effective supply contract” both companies had until 30 June 2024.
Edeka formerly stocked a range of the company’s cereals, such as Cornflakes, Honey Bsss Pops, Special K and Smacks, as well as a wide range of Pringles crisps.
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By GlobalData
In an interview with Focus, Markus Mosa, Edeka CEO, said the retailer did propose a double-digit price increase to Kellogg as a compromise, which was refused.
Speaking on the future of Edeka’s relationship with Kellogg, he added: “Next year, we could renegotiate but then, of course, on the basis of the new, higher prices that have found buyers on the market.
“It is to be expected that we will then be confronted with another increase in the purchase price. We won’t play that game.”
The retailer refused to comment on how much it believes Kellogg’s actions have impacted its annual profits.
Commenting on the claim for compensation in a statement, Mosa said: “We are continuing to defend ourselves against the business practices of some international branded goods companies and are fighting for fair prices on supermarket shelves.”
Edeka has been in conflict with a number of food and drinks companies over the past 12 months, including Coca-Cola Europacific Partners (CCEP), Mars and PepsiCo.
The retailer came to an agreement with CCEP towards the end of last year but is still in dispute with five companies including Mars, PepsiCo and Kellogg.
Just Food contacted Kellanova, the separate company that now houses the former Kellogg’s international cereal business, for comment. The group remained tight-lipped.
