Arla Foods faces pricing dispute with Denmark’s Salling Group

DENMARK – Arla Foods, a major player in Denmark’s dairy sector, is embroiled in a pricing dispute with Salling Group, the country’s largest retailer. 

This disagreement has led Salling Group to remove some of Arla’s products from its stores, including those from its supermarket chains Netto, Bilka, and Føtex.

The conflict centers on Arla’s pricing strategy, which Salling Group has criticized. 

According to Danish media reports, Salling Group has expressed confusion over Arla’s price increases and described the ongoing dialogue with the dairy company as challenging. 

Salling Group has not specified which Arla products have been removed, but there are indications that protein drinks and skyr might be among them.

Meanwhile, Arla has acknowledged the situation through the company’s spokesperson who onfirmed that some of their products have been restricted in Salling’s stores due to the ongoing price negotiations. 

Bjarke Munk Kamstrup, Arla’s Head of Global Media Relations, explained that the company is grappling with rising milk and fat prices in the European market, which historically influence retail prices. 

In response, Arla aims to balance competitive pricing for its farmer owners while ensuring that its products remain attractive to consumers.

Arla’s CEO, Peder Tuborgh, commented that the global balance of supply and demand is currently skewed, affecting prices. 

This situation follows Arla’s recent financial disclosures, where the company addressed the pressures from fluctuating market conditions.

This dispute is part of a broader pattern of tensions between manufacturers and retailers over pricing across Europe. 

Earlier this year, French supermarket giant Carrefour faced a similar issue with PepsiCo, resulting in the delisting of PepsiCo’s products across European stores until a resolution was reached.

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