6 EU retailers are said to have reached a tentative compromise deal with Nestle.
On Tuesday, Swiss news daily Frankfurter Allgemeine Zeitung stated, Nestle and Edeka, a German grocer, are negotiating a new contract having reached a tentative compromise in their months-long price battle to increase their market footprint.
Earlier this month, in a sign that underscores the escalating price war between the world’s biggest packaged food maker and European retailers, Germany’s largest supermarket group, Edeka, had recommended to it stores to drop a number of Nestle products from its stocks.
Last week, FAZ reported citing an anonymous source familiar with the matter at hand, Edeka-led AgeCore, a Geneva-based group of 6 European retailers, has reached a tentative deal.
“Nestle managers were willing to make concessions on key points,” said the source.
According to the report, the supermarket group, among other things, had demanded that Nestle further opens its purses on joint marketing campaigns.
The news of the deal comes at a time when retailers are facing a change in consumer tastes midst growing competition coming from online e-commerce.
Further, it also comes at a time when Nestle, under the leadership of Mark Schneider, a new CEO, is reeling from its weakest annual sales growth in at least 20 years.
Nestle was not immediately available for comment.