Largest German supermarket impacted by Mars’ “unilateral” supply stop

Mars has had its supply to the largest German supermarket, EDEKA, blocked over pricing issues.

Local newspaper Holsteinischer Courier reported that Mars’ products are disappearing from the shelves of 720 EDEKA Nord stores in the northern part of the country. 

These include a wide range of products, including the multinational’s pet food products. The supermarket chain confirms to GlobalPETS that the segment has been “affected by the unilateral supply stop.”  

Some sources suggest that the German retailer is not stocking products such as Sheba cat food and Pedigree dog food.

“Unjustified” price hike

EDEKA says the issue stems from the “demand for unjustified and exaggerated price increases by some international brands.” For EDEKA, it was important to consider the interests of their customers amid this economically challenging time.

“We are pleased to report the extensive support many consumers have shown us in recent months regarding our firm insistence on the affordable pricing of the products in our ranges. Consequently, the demand for alternative brands and our widely accessible private labels have increased significantly in relevant product ranges,” reads a company statement quoted by industry publication Just Food.

The supermarket chain clarifies that they are not removing Mars products from their offers and do not plan any discontinuation of them.

Ensuring availability

A spokesperson for Mars in Germany told GlobalPETS that they aim to ensure that their products continue to be available throughout Germany.

“We appreciate the longstanding and successful cooperation with EDEKA. Our focus, therefore, remains on finding a solution together for the benefit of our consumers so that our beloved products can soon be found on EDEKA shelves again,” it says. 

The multinational confirmed a while ago that price adjustments are usually “necessary” in a volatile marketplace marked by wide-ranging inflationary pressures.  

Financial impact

The German market is a major earner for Mars, and this situation could potentially impact the company’s finances.

According to Retail Detail, EDEKA makes up approximately one-third of Mars’ German supermarket sales, accounting for €‎230 million ($248.8M).

The price negotiations between the German supermarket chain and the multinational have been going on since the end of last year after Mars was believed to have proposed a price hike exceeding 10% across 450 products.

Last October, Retail Detail reported that Mars stopped deliveries to the supermarket due to disagreements over prices.

In July 2022, Mars halted the supply of Whiskas and Pedigree to the UK’s largest supermarket chain. Earlier this year, online retailer Zooplus refused to comply with the price increase applied by Royal Canin.