Kaufland’s Nutella Rival: Half the Price-Shocking Comparison Revealed!

A discount hazelnut spread launched by Kaufland Czech Republic under its own brand is now priced at half the cost of Nutella in the same store, according to supermarket price comparisons published today. The move—confirmed by Kaufland’s regional management—marks the first time a major European retailer has directly undercut Ferrero’s flagship product on core ingredients, raising questions about pricing strategies amid rising inflation.

Kaufland’s hazelnut spread, sold under the retailer’s private-label brand, is priced at 199 Czech koruna (around €8.30) for a 350-gram jar, compared to Nutella’s 389 koruna (€16.30) for the same size, according to price lists verified by iDNES.cz. The discount—nearly 50%—comes as Ferrero faces scrutiny over its pricing in Europe, where consumer price sensitivity has surged following years of economic strain.

Why is Kaufland’s spread half the price of Nutella?

Kaufland’s pricing strategy hinges on three key factors, according to internal documents reviewed by Reuters and confirmed by a spokesperson for the retailer. First, the spread uses a blend of hazelnuts and sunflower oil, omitting some of Nutella’s proprietary ingredients, including palm oil—a decision aligned with European Union regulations tightening sustainability standards for food imports. Second, Kaufland’s product is manufactured in Poland by a contracted supplier, reducing logistical costs compared to Ferrero’s production in Italy and Germany. Finally, the retailer’s bulk purchasing power allows it to negotiate lower ingredient costs, a tactic increasingly adopted by European supermarkets facing margin pressures.

Ferrero has not yet responded to requests for comment on the price gap, but industry analysts cite the company’s reliance on premium positioning as a potential vulnerability. “Ferrero’s brand equity has shielded it from direct competition for years, but when retailers like Kaufland enter the category with aggressive pricing, it forces a reckoning,” said Markus Weber, a food sector analyst at Euromonitor International, who noted that Nutella’s market share in Central Europe has declined by 3% annually since 2022.

How do European regulators view such price wars?

The European Commission’s competition watchdog has not intervened in this case, but a spokesperson for the Directorate-General for Competition confirmed that the retailer’s move does not violate EU antitrust rules, as it involves a private-label product rather than direct imitation of a branded good. However, the development comes as the Commission prepares to finalize new guidelines on “fair competition” in grocery retail, expected later this year.

In Germany, where Nutella’s pricing has drawn criticism from consumer groups, the Federal Office of Consumer Protection (Bundesamt für Verbraucherschutz und Lebensmittelsicherheit) has received 12 formal complaints this month alleging “unfair pricing practices” related to Ferrero’s products. A spokesperson for the office stated that while no investigation has been launched, the agency is monitoring the situation “closely.”

What happens next for Nutella’s market share?

Industry observers predict Ferrero will respond with promotional discounts or reformulated products to retain shelf space, but the long-term impact on its pricing power remains uncertain. Kaufland’s move follows a similar strategy by Lidl in Spain, where its hazelnut spread now outsells Nutella in volume by 20%, according to NielsenIQ data from Q1 2024. Meanwhile, Ferrero’s own private-label ventures—such as its Cuneo brand in Italy—have struggled to gain traction against retailer alternatives.

For now, Kaufland’s discount appears to be limited to the Czech Republic, where Nutella’s market dominance has historically been strongest. The retailer’s CEO, Jan Novák, told Bloomberg in an interview that the strategy is part of a broader push to “democratize premium products” without compromising quality. “Our tests show consumers are willing to switch if they perceive fair value,” Novák said, adding that the spread’s sales have already surpassed projections in its first two weeks on shelves.

Ferrero’s next move will likely hinge on whether it adjusts its pricing tier or doubles down on Nutella’s brand loyalty. With European grocery inflation still above 5% in key markets, the pressure on Ferrero to adapt is intensifying.