A dispute between the German supermarket chain Edeka and the giant US food producer that makes Corn Flakes over higher supply prices for much-loved breakfast cereals escalated on Friday after a claim for damages was lodged against Kellogg.
This is intended to compensate for lost earnings and customer losses, Edeka said, without commenting on the size of the claim.
However, according to the Lebensmittel Zeitung, a consumer goods paper, it is initially around €10 million ($10.6 million), rising to as much as €34 million by mid-2024 if Kellogg still fails to deliver.
Its iconic cereal brands like Corn Flakes or Froot Loops are regarded in the food industry as so dear to customers that they will take their entire grocery shopping elsewhere if their breakfast favourites are unavailable.
According to Edeka, Kellogg wanted to increase prices by up to 45%. The chain reportedly accepted the demands in part, but Kellogg did not resume deliveries, against Edeka's expectations.
"We are continuing to defend ourselves against the business behaviour of some international brand manufacturers and are fighting for fair prices on supermarket shelves," said Edeka boss Markus Mosa.
A Kellogg spokesperson on Friday declined to comment on the issue, which to a lesser extent also concerns Pringles crisps.
Edeka previously complained about Kellogg to Germany's Federal Cartel Office, maintaining that it is obligated to supply the products due to its dominant market position in the breakfast cereals range.
Kellogg was split into two companies in October, with WK Kellog Co owning the North American cereal division, and the existing company being rebranded to Kellanova. Kellogg's itself remains a brand name of both companies.
