“Colruyt Faces Shortage of Mondelez Products Amid Pricing Showdown”

2023-05-10 09:21:00

Colruyt customers are facing a shortage of certain products from the Mondelez group. The distributor leads a showdown with the manufacturer, refusing the new price increases that the latter wants to impose.

“An annual agreement, for the whole of 2023, has been signed with our supplier Mondelez, which supplies brands such as Lu, Oreo, Milka, Belvita, Côte d’Or, Stimorol and Philadelphia. Despite the agreement, Mondelez has informed us that he wishes to apply a further substantial price increase. As Colruyt Group, we do not agree with this new request for a price increase. We consider it extremely important to examine this question with a very critical eye, because we are the link in the chain which must protect the wallet of the consumers, in particular as a player practicing the best prices.”

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While the price increases for energy and raw materials constituted an exceptional situation last year, forcing Colruyt and its suppliers to sit down around the negotiating table to “to see how we could jointly ensure that each link in the chain makes a proportionate contribution to its capabilities, with the group having every interest in ensuring that this also remains feasible for its suppliers.”

“Today, the situation is completely different and large price increases are no longer justifiable for us. On the one hand, the unexpected element no longer exists. Suppliers, like us, have been able to prepare for the increase in cost items with a lasting impact, such as labor costs. On the other hand, we see that energy and raw material prices are falling. So we estimate that a reduction in prices would be more justified.

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This standoff leads to a stock shortage of Mondelez products at Colruyt, which also affects in-store supplies. “However, we have a wide range of quality products from other well-known brands and own brands, and we make available a number of substitute products in order to offer sufficient choice to our customers. , we will do everything in our power to resolve the situation. However, we maintain our position that we want to protect our clients’ wallets above all else and that this remains our top priority.”

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