Trade dispute escalates
Even more trouble for Edeka: now Tempo handkerchiefs and Zewa are running out
Tempo handkerchiefs on a supermarket shelf.
© Norbert SCHMIDT // Picture Alliance
The next trade dispute is looming for Edeka: The manufacturer of Tempo handkerchiefs and Zewa no longer feel bound by the delivery contract with Edeka. And asks for more money. In the first Edeka branches there are already gaps on the shelves.
The supermarket chain Edeka is heading for the next trade dispute: After the company has already been in a dispute with Granini and Pepsico, hygiene paper supplier Essity is now being added. The manufacturer of Zewa and Tempo handkerchiefs apparently no longer feels bound by the negotiated supply contracts, reports the “Food newspaper“The reason for this is the massive increase in raw material and energy prices for the manufacturer. According to the industry newspaper, Essity is demanding significantly higher prices despite the current contract period. Informants reported to the”LZ“From a” disruption of the business base. “Edeka, on the other hand, threatens to take legal action if deliveries are not made.
The fact that Essity is already delivering fewer goods can be seen from the unloaded Tempo and Zewa shelves in some Edeka branches, according to the “LZ”. Some Edeka dealers also report that Tempo products can no longer be ordered. The Zewa range is only available to a limited extent.
When asked by “LZ”, both companies did not provide any specific information, reports the “LZ”. An Edeka spokeswoman only confirmed that the “annual talks this year are indeed very challenging”.
The manufacturers of so-called tissue products (toilet paper, handkerchiefs, household rolls) are hit twice by the current price increase. On the one hand, rising energy costs are a price driver. On the other hand, the prices for pulp have also climbed. According to a calculation by the “LZ”, the costs could have risen by a total of 50 percent. It is true that there have already been price increases in the discounter sector in the course of the year. But apparently Essity now wants to repeat the overspending of the trade.
Edeka negotiates prices
Edeka doesn’t want to take it that way. The negotiations are “not an ego shoot for the dealers,” says Edeka boss Markus Mosa to the “LZ”. “We are currently trying to reverse the dishonest behavior of some consumer goods manufacturers.” Industry insiders suspect that the market for suppliers could be reorganized. Apparently the dealers are currently looking for new suppliers. Edeka used an Eastern European supplier as early as 2020. The Soffione brand has meanwhile disappeared from the markets, but the company behind it, the Russian WR Group, would continue to play a role, reports the “LZ”.
Apart from household and handkerchiefs, Edeka has to resolve further trade disputes. So the dealer is currently fighting with the Pepsi parent company Pepsico. Products such as Pepsi, Lay’s Chips, Lipton iced tea or Schwipschwap are currently affected. Here, consumers often only find empty shelves.
Edeka is also currently in a duel with the juice supplier Eckes-Granini. The price war is now even preoccupying the courts. Because the supermarket dealers had just removed Granini from the shelves and replaced it with a private label – in optically very similar bottles to the Granini original. On the other hand, the manufacturer went to court and obtained an injunction. The disputes with the beverage manufacturers are also about the purchasing conditions.
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