Trade defends itself – the price dispute over the expensive branded goods

Negotiations between industry and commerce have always been heated. After all, everyone wants to get the best price for themselves. This year, the talks are even more tense due to cost increases.

Mars stopped supplying Rewe
Started in Germany, where retailer Edeka even went to court over a price adjustment by beverage giant Coca Cola, the price dispute is now spreading to Austria. US group Mars recently stopped supplying products such as Mars, Snickers, Pedigree, Whiskas or Ben’s Reis to Rewe (Billa, Penny) because Rewe rejected the requested price increases as “completely excessive”.

Dispute with “very powerful” branded companies in Austria
Günter Thumser, director of the Association of Branded Articles Industry, can’t share this assessment: “No business will grow more than it needs to.” Branded products are not price drivers. “That’s one of the biggest lies,” Thumser emphasizes. GfK’s figures show that in August, for example, branded products were 11.5 percent more expensive, but private labels were 17.7 percent more expensive.

Food retailer Spar says it is making sure that prices remain affordable for consumers and viable for suppliers, which is currently a challenge. “The negotiations with the manufacturers are currently tougher than ever,” says Spar board member Markus Kaser. There are no delivery stops, but big brand companies are very powerful.

To be a bit more independent, the company has therefore pushed its own brands (which already account for 40% of the turnover at Spar). At the same time, however, the brand manufacturers are asked – instead of increasing profits – to give up part of the margin, such as Spar, so that the products remain affordable for everyone.

However, given the six to eight times higher energy costs, Thumser demands more from retailers: “It has reached a point where it is no longer possible.”