Friday, February 13, 2009

Grocery Wars

Came across this news story the other day:
According to reports, Delhaize SA, one of Belgium's largest supermarket chains has suspended buying .. and could stop selling .. products from Unilever (maker of Knorr, Dove, Axe and other personal care goods). Apparently they couldn't come to terms over pricing and product promotion.
According to the Financial Times:
The move to delist Unilever products reflects tensions between consumer goods suppliers and supermarkets, which are under pressure to cut prices for consumers as household incomes drop. Meanwhile, mainstream consumer brands are finding it tougher to get shelf space as supermarkets stock more discount brands, including own-label.

The interesting thing about this is that Delhaize operates the Food Lion and Hannaford chains here in the U.S. Gotta wonder if this could eventually spill into their U.S. stores, and if it does, what does it mean for us? Lower prices? Or lower prices hikes? Or could it ultimately mean fewer choices?

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