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After a supply boycott that lasted for months, manufacturer Kellanova will put its Pringles products back on shelves at Edeka and Jumbo. The manufacturer speaks of “a first step”, as it has not yet reached an agreement with the retailers on its Kellogg’s products.
Major damage
The dispute between Kellanova and Everest, the buying alliance of Edeka, Jumbo and Picnic, has been going on for about a year. In the absence of a commercial agreement, the manufacturer decided to stop supplying both its Pringles and Kellogg’s products. That drastic decision did major damage to both parties, as the German number one and the Dutch number two together represent a sales for the manufacturer. On the other hand, both supermarket chains also missed out on a lot of sales due to the absence of two strong brands – and they risk dissatisfied customers moving elsewhere.
This part of the boycott should end soon though, as the parties have reached an agreement to supply the Pringles chips to Everest members again, German trade magazine Lebensmittel Zeitung reports. By next month, the products should be back in the shops. However, the manufacturer says this is just a first step, as there still is no agreement on restarting the Kellogg’s deliveries.
Incidentally, the latter is missing not only from Edeka, but also from Germany’s runner-up, Rewe. As a result, the breakfast cereal category in Germany suffered major damage: sales fell 13 % between January and August compared to the same period last year, LZ calculated. Meanwhile, competitors and private labels have taken up free shelf space and Kellogg’s has had to rely on discount chains.
