Coca-Cola, Wrigley's and Whiskas are missing: why so many shelves remain empty
Created: 2022-11-10 09:23
By: Jonas Napiletzki
In some supermarkets these days, some supermarket shelves remain empty.
(symbol photo) © Arnulf Stoffel / dpa
Coca-Cola, Wrigley's or Uncle Ben's rice: Many products are currently missing from the shelves because supermarkets and manufacturers are fighting over prices.
Munich – If the cat only eats Whiskas and its owner buys from Edeka, the two have a problem.
For some time now, there have been gaps on the shelves of many supermarkets where branded products used to be stored.
This is often not due to delivery bottlenecks, but to targeted stops or delistings.
A power struggle is raging between food companies and manufacturers - with serious consequences for consumers.
These brands are affected
According to Gernot Kasel, spokesman for the Edeka headquarters, the supermarket group has been “in tough negotiations with the branded goods industry for months”.
The result: "In order to enforce the price increases, which we usually do not understand, the industrial groups often impose a unilateral delivery stop on us as soon as we do not accept the new prices."
The chains of the Schwarz Group are keeping a low profile as to whether this is also the case with Kaufland and Lidl.
The Rewe Group does not name any affected brands either, but confirms that it will reject incomprehensible price demands.
According to Kasel, that is exactly what Edeka has done with demands from the Mars Group.
The product areas pet food, basic food, confectionery and ice cream are now affected by delivery stops.
In addition to Whiskas and well-known sweets, the group includes the chewing gum Extra, Orbit and Wrigley's or the rice brand Ben's Original.
Coca-Cola is also missing across the board (see box).
Other brand groups are currently trying to “ride the wave of inflation with excessive price demands”.
The Edeka spokesman mentions Procter & Gamble, which includes Ariel, Lenor, Braun and Gillette.
Coca-Cola is allowed to interrupt deliveries
The power struggle between Coca-Cola and Edeka was also fought in court.
After Edeka failed to accept price increases, Coca-Cola stopped deliveries.
The supermarket group obtained an injunction from the Hamburg district court at the beginning of September: Coca-Cola had to continue to deliver – for the time being.
The restraining order was lifted on September 29.
Coca-Cola saw this as confirmation that price increases were proportionate.
Edeka obviously sees things differently: the delivery is further interrupted – there is still no agreement.
Manufacturers counter the allegations
Gabriele Hässig, spokeswoman for Procter & Gamble, counters: "There is no unilateral delivery stop on our part to individual partners in retail." The manufacturer hopes for an early agreement.
Coca-Cola spokeswoman Marlen Knapp emphasizes: "The price adjustment also takes into account the current market environment with significant cost increases for energy, primary products and services." The increase is also below the current food inflation and the development of many private labels.
Mars spokeswoman Tanja Tuschka explains that the group is absorbing rising costs internally as much as possible;
however, a certain amount of price adjustment is necessary.
The industry is under inflationary pressure.
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Supermarkets weigh up decisions
Who wins in this power struggle - whether supermarkets or manufacturers - depends on the individual case, says Kai Hudetz, Managing Director of the IFH Cologne.
He explains: "The profit margin in the food trade is rather low." However, customers are currently "extremely focused on the price".
As a result, supermarket chains would weigh very carefully.
If they pass on a requested price increase to their customers, there is a risk with so-called corner products that consumers will conclude from the complete range and perceive the entire market as expensive.
"Then the entire weekly shopping might be done with the competition because, for example, Coca-Cola is cheaper there." If the product is instead delisted, i.e. no longer sold in the branches, there is the same danger with so-called strong brands.
Alternatively, supermarkets press the prices at their own expense, which could result in a loss.
“The law of large numbers applies here.” A small loss – perhaps just a few cents per jar of Nutella – would be problematic due to the mass sold.
Customer behavior is crucial
Whether supermarkets are better off selling products expensively, not at all, or at a loss depends on their position.
"This is where desirability plays a role," explains Hudetz.
A supermarket can position itself so well with friendly staff, parking spaces, short waiting times or a beautiful building that customers do not want to go to any other market.
On the other hand, there can be strong product brands whose desirability is so great that customers do not want to do without them under any circumstances.
It is therefore important to keep a close eye on the reactions and preferences of customers: "Supermarkets try to use collected data to make forecasts in order to act accordingly," explains the retail expert.
The IFH managing director takes a differentiated view of the accusation made by individual supermarket chains that manufacturers are unjustifiably increasing prices.
"There is a reasonable suspicion that manufacturers are looking ahead and raising their prices too soon rather than too late," says Hudetz.
However, you have to look at the individual case so as not to do manufacturers an injustice.
The debate is being exacerbated by intense competition, energy costs and inflation - actually normal market dynamics.
But: In crisis situations, competition intensifies.
"The system is exhausted," says Hudetz.
The result is heated price negotiations and empty shelves.
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