Some Danone products will soon no longer be available in Lidl stores. From May 15, the hard discount brand will no longer market eight of the dairy group's products, Capital revealed on Wednesday.
"We take them out because of a lack of transparency," says Michel Biero, director of purchasing at Lidl. A reference to the Egalim law, which aims to rebalance the relationships between distributors and farmers by establishing selling prices indexed to production costs.
Lidl makes a move
"To compensate farmers at the right price, you have to know how many liters of milk are necessary for the manufacturer to make his yogurts," explains Michel Biero. “However Danone refuses to communicate it clearly to us. "
This decision will not impact Danone too much: the French group only sells 1% of its stocks at Lidl, notes Capital . "We take note of Lidl's position," commented the dairy giant, still feeling "surprised" by the motivations of the brand.
Lidl does not let the breeders down. Believing that this withdrawal could harm them financially, the large-scale distribution group will order 30 million liters of milk from producers who work with Danone. These dairy products will be marketed under the Envia brand, formerly owned by Danone and now owned by Lidl.
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