NewsChocolate crisis in Germany as Oreo and Milka vanish from shelves

Chocolate crisis in Germany as Oreo and Milka vanish from shelves

Mondelez corporation products are disappearing from store shelves in Germany.

Images source: © East News | ZOFIA BAZAK

6:33 PM EDT, May 8, 2024

Products under Mondelez brands like Oreo, Alpen Gold, and Milka are vanishing from store shelves in Germany due to proposed price hikes by the manufacturer.

The website "Retail Detail" has reported that Mondelez has stopped supplying its products, including popular brands such as Oreo, Milka, BelVita, and AlpenGold, to REWE, the country's second-largest supermarket chain.

According to "Retail Detail", a service providing industry insights, the dispute centers around Mondelez's desire to increase prices, which REWE is contesting. As a result, the American company has ceased delivering to REWE stores.

REWE's franchisees are understandably upset by the product shortage, which is detrimental to their competitive standing. Mondelez, on the other hand, is using this strategy to pressure REWE to accept the price hikes.

Chocolate prices to climb further

The push for higher prices comes amid soaring cocoa costs, which have reached record levels in recent months. WP Finances attributes this spike to suboptimal harvests in Ivory Coast and Ghana, which produce two-thirds of the world's cocoa. Adverse weather conditions like heatwaves, droughts, storms, and plant diseases have severely impacted this season's yields.

Africa is the leading producer of cocoa beans, which are exported and processed predominantly in wealthier nations. Local farmers in Ghana and Ivory Coast argue that the proceeds from bean sales are insufficient to reinvest in new trees or maintain the old, disease-prone ones.

Experts forecast that by year-end, cocoa prices could surge to between $12,000 and $13,000 per ton, potentially even nearing $15,000.