Brussels-based Delhaize SA, which operates the Food Lion chain and other grocery stores in the U.S., has removed about 300 Unilever products from the shelves in its Belgian stores. The banished
products include everything from Dove soap and Axe deodorant to a jam brand called Effi. Delhaize normally stocks as many as 500 Unilever products in its 775 stores in Belgium.
Delhaize says its conflict with Unilever is rooted in the supplier's effort to push a broad range of goods into its stores, including some that the grocer says it would prefer not to stock because
they are unpopular, Cecilie Rohwedder, Aaron O. Patrick and Timothy W. Martin report. If the supermarket doesn't buy the whole range of products, Delhaize says, Unilever has threatened to raise
prices by an average of 30% for the remaining items.
Meanwhile, Kroger shares were downgraded from "buy" to "hold" on Tuesday after Citi retail analyst Deborah
Weinswig cautioned investors that a national price war may be developing between the it and Wal-Mart, Safeway and Supervalu, the
Cincinnati Enquirer reports.
Weinswig predicts that there will not be enough shoppers spurning
restaurants for grocery store meals to counter lower revenues in a grocery store price war. Estimates on Supervalu and Wal-Mart earnings were also lowered.
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