Plus tells suppliers to pay for supermarket price war

The Plus supermarket group has written to its suppliers to say wholesalers will have to foot the bill for the latest supermarket price war, Nos television reports on Monday.

The letter, sent to A brand suppliers, states that ‘current market developments’ mean Plus is earning less on branded items.

This means it is necessary ‘to charge you for the lost margin’, Nos quotes the letter as saying. Suppliers have been given 14 days to stump up the cash.

Price cuts

Supermarket group Albert Heijn launched the price war two weeks ago by slashing prices on hundreds of branded products by an average of 6.5%.

Nos says Plus is among several supermarket groups which earlier this month signed an EU agreement pledging not to make suppliers pick up the bill for discount campaigns.

A spokeswoman said the company is not breaking the agreement because the letter is merely a ‘proposal’ and that suppliers are invited to come up with other suggestions to compensate for the lost income.

Last year, Albert Heijn, Sligro and Jumbo made similar demands of their suppliers.

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