Kellogg in Aldi own-label deal
Cereal giant strikes deal with Aldi in Germany to supply own-label products for the first time
Kellogg, the cereal giant with a tradition of using only its name on products, has struck an own-label deal with German supermarket Aldi.
It is believed to be the first time the company has supplied own-label products.
A slogan on Kellogg’s cereal packets claims: “If you don’t see Kellogg’s on the box… it isn’t Kellogg’s in the box.” But now Kellogg has negotiated a deal with Aldi to supply products in Germany bearing a different brand name. Reports in Germany say the deal was struck after Aldi announced it would no longer pay suppliers’ prices and threatened to axe top brands from its shelves.
It is believed Aldi hoped to link up with German cereal supplier DeVauGe when Kellogg bowed to buyers’ pressure and agreed to sell products under another brand name.
Kellogg Europe president Alan Harris says: “We have taken this decision as we have a responsibility to shareholders to generate the best possible returns in competitive market conditions.
“Kellogg’s focus is still strongly on the creation and marketing of superior branded products to maintain and develop our market leading position.”
A Kellogg UK spokeswoman says the deal is exclusive to Aldi in Germany and there are no plans to repeat the move in the UK.
She could not say which brands are involved in the German deal, or whether Kellogg’s name would appear anywhere on the packaging.
A spokeswoman for Aldi’s buying department in Essen, Germany, says the company does not comment on deals with suppliers.
An Aldi UK buyer says it doesn’t stock Kellogg’s cereal in the UK and has no plans to approach the company as an own-label supplier.