Price Battle Around Milka Chocolate in Germany

The brand has recently come under fire from consumers. After raising prices citing higher raw material costs, Milka reduced package sizes while keeping prices high. This move led to widespread criticism, and the consumer organization Foodwatch awarded Milka the “Golden Windbeutel” for the “most brazen advertising lie of the year” last summer, t-online.de reports referring to news by Wirtschaftwoche.

Retailers are now responding with aggressive discount campaigns. In recent weeks, Milka bars have been sold at more than 50 percent off in many stores. At Penny, the prices of 90-gram bars dropped to €1, or even €0.79 with the app. Rewe and Edeka offered app credits and 40 percent discounts on larger bars, while Kaufland temporarily cut prices by more than half.

Industry insiders note that these promotions are not only driven by falling demand but also by Mondelez’s efforts to salvage its financial year. Although retailers officially set prices, manufacturers and chains coordinate discount campaigns in advance, with the industry often contributing through advertising subsidies.

Meanwhile, a new dispute is brewing: Mondelez reportedly seeks another 20 percent price increase, citing packaging and labor costs. This comes despite relatively low prices for key raw materials like milk and sugar, and largely automated production. If negotiations fail, some Milka products could temporarily disappear from shelves – a scenario not unfamiliar in German retail, as Edeka previously removed Mars products over pricing disagreements.