In Germany, Migros steps into the breach for Mars
Because of a price dispute, the German retailer Edeka is now selling Migros chewing gum – and soon also coffee and machines from the Coffee B line.
The traditional Migros chewing gum of the Skai brand will also be available in Germany in the future. Ten varieties of Skai – such as “Peppermint” or “Spearmint” – are to be sold in the branches of the large German retailer Edeka. The reason for this is a price dispute between Edeka and Mars, the manufacturer of the Airwaves brand, as the “Lebensmittelzeitung” writes.
In times of inflation and rising prices, price negotiations between retailers and suppliers are particularly difficult. Is there no agreement Retailers sometimes take products out of their range, to build up pressure – or the supplier no longer delivers products under the negotiated conditions. Then the shelves remain empty.
Edeka is currently missing around 400 products that account for annual sales of 300 million euros. The US manufacturer Mars, for example, has not been supplying the German market leader for several months. Customers are currently looking in vain for the popular chocolate bars and chewing gum from the Mars brands Orbit, Wrigley’s, Airwaves and Hubba Bubba.
Strong foreign business
In addition to various chewing gum flavors from the Skai brand, Edeka will soon be adding another Migros product to its range: The Coffee-B capsules will also be launched in Germany next week after the start of sales in France.
The Skai chewing gums are manufactured by Delica AG in Buchs AG, where numerous other own brands are produced – such as Chocolat Frey or Midor. According to Migros, Delica is the only chewing gum manufacturer in Switzerland. It has been in operation since 1974.
The Migros industrial division is constantly expanding its business abroad: in 2022, foreign sales exceeded one billion francs for the first time. Total sales last year were CHF 30.1 billion.
In addition to Edeka, the Coffee-B range will also be on the shelves in the German electronics retail chain Mediamarkt Saturn.
Last September, the coffee balls were announced in Switzerland as the “biggest product innovation in the company’s history”. In the annual report, the start of sales is described as an “important milestone”, but Migros is silent on the sales figures. Only so much: Those responsible are with the start “very satisfied”. “We have a four-year plan and we sense that there is a lot of interest, including abroad.”
In addition to Skai chewing gum and the Coffee-B capsules from its own production, Migros wants to promote business abroad with higher-margin items such as Chocolat Frey, Café Royal or the beauty brand Marq Labs. Foreign sales are expected to grow to CHF 1.5 billion in the next few years.
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