Branded Manufacturers Build Partnerships With Discount Retailers; Discounters Sell More Branded Products

Discount retailers in Europe are selling more products from branded manufacturers as part of their efforts to sustain growth and respond to shoppers' needs. Nestle and Procter & Gamble in Germany, already partners with Aldi Sud for a while, increased the number of their products sold at the discounter's stores. Branded manufacturers need to sell their products through discounters; however, they face the risks of price spirals, price erosion, as well as creating strains in relationships with conventional retailers.