German retailer Edeka has cut orders for some of Anheuser Busch InBev’s brands in an ongoing dispute over prices.
The supermarket chain confirmed to Just Drinks it has reduced order volumes for ten AB InBev brands in its German stores.
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It did not identify the brands concerned but at the time of writing Beck’s was still being marketed on the group’s online website Edeka24.
“We would like to confirm that we still have sufficient stock. Customers will continue to find the mentioned brands in our stores,” Edeka said in a statement.
AB InBev sells Stella Artois, Corona, Budweiser and Löwenbräu in Germany, among other brands. However, the Jupiler maker declined to comment on the spat when contacted by Just Drinks.
Edeka said the dispute involves the Belgian brewing major along with the European buying alliance Everest, of which Edeka is a member.
The chain added: “AB InBev is demanding a drastic price increase for its products, amounting to several million euros.
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By GlobalData“These cost increases are not reflected in actual production costs – it is pure speculation. In the interests of our customers, we cannot accept this excessive price increase.”
As a result, retailers have cut their orders “for certain AB InBev products”, Edeka claimed.
Edeka said talks were ongoing with the Leffe brand owner and that they were “striving to reach an agreement on reasonable prices”.
It added: “We always consider the interests of consumers and will continue to work to ensure that they are not unnecessarily burdened.”
Other brewers have also faced pricing disputes with Everest this year.
In July, Heineken reached a commercial agreement with Jumbo, which is also part of the Everest alliance.
Heineken had taken Jumbo to court in May over the retailer halting orders of some of the brewer’s brands.
Speaking to Just Drinks following the release of the group’s first-half results in July, Heineken CEO Dolf van den Brink said the business was “concerned” about the growing power of buying alliances in Europe.
“We’re a bit concerned that these big European retail combinations are becoming more powerful and more dominant and also in hardening in the tactics.”
The Heineken CEO said that while discussions with local retailers have “been fair game”, he added “it’s really the emergence of these European alliances where we really need to assure that the game is played fairly”.
