Mondelez halts supply to German chain REWE amidst price dispute

Products from the Mondelez company, including well-known brands such as Oreo, Alpen Gold, and Milka, are disappearing from the shelves in Germany's stores. The blame? Manufacturers' excessive price hikes.

Mondelez has stopped supplying its products, including Oreo, Milka, BelVita, and AlpenGold, to REWE, the second-largest supermarket chain in Germany.

According to the "Retail Detail" website, citing industry sources, Mondelez plans to increase the prices of its confectionery goods, but REWE does not consent to these hikes. As a result, the American company has ceased its deliveries to the chain's outlets.

REWE's franchise owners are discontented with the absence of these products, as it undermines their competitive stance. On the other hand, Mondelez aims to leverage the product price increment through this standoff with REWE.

The looming price surges stem from unprecedented high cocoa prices witnessed globally in recent months. The poor yields in the Ivory Coast and Ghana—countries that contribute two-thirds to the world cocoa supply—are to blame. The harvest has plummeted this season, afflicted by heat, droughts, sudden storms, and diseases harming the plantations.

Africa primarily produces cocoa beans, exported and processed predominantly in affluent nations. Farmers in Ghana and the Ivory Coast assert that the proceeds from bean sales fall short of covering investments and planting new saplings, while the older trees are becoming less productive and more disease-prone.

Experts forecast that cocoa prices on the market by year's end could top £9,000 to nearly £10,000 per ton and might even reach around £11,000.