Colruyt blames price dispute for lack of Mondelez products

(Reuters) -Belgian supermarket chain Colruyt said its supplies of Mondelez products, such as Milka chocolate and Lu and Oreo biscuits, have been halted during a dispute over price increases by the food producer.

Inflation and the resulting cost of living crisis have put pressure on retailers and consumer goods companies to keep prices low and made negotiations between them more tense.

Colruyt said Mondelez, which also produces Stimorol chewing gum and Philadelphia cream cheese, had asked for an additional price increase after an agreement for 2023 had already been finalised. It declined to say when Mondelez made the request.

"Currently, there is no new supply of Mondelez products and this will also be noticeable in our Colruyt and OKay shops," Colruyt said in an emailed statement.

Mondelez said "we've made the decision to make some selective cost price increases across our categories", declining to specify when the decision was made. The company said it is in discussions with Colruyt to find a solution.

"We understand that consumers are faced with rising costs too, which is why we look to absorb these costs wherever we can," Mondelez said.

Colruyt said large rate increases from suppliers are "no longer justifiable" because energy and raw material prices are falling. Grocer Ahold Delhaize on Wednesday also said it is pushing suppliers to reduce their prices as commodity costs start to fall back.

(Reporting by Helen ReidAdditional reporting by Diana Mandia AlvarezEditing by David Goodman and Sharon Singleton)