GERMANY/NORWAY – A supplier deal between Norwegian dairy group Tine and German discounter Lidl will not go ahead, after a row about the packaging of Tine’s milk.

The two could not find middle ground over how the milk would be packaged, with Tine insisting that the milk be packaged in its own cartons.

Lidl recently had a similar problem in Sweden, where the seven major dairies refused to supply it with own brand milk, instead insisting that they use their own dairy brands. Lidl now imports its milk from Germany.

Lidl’s usual policy is to sell milk imported from Germany that is packaged in its own-brand cartons. This has not been possible due to high import tariffs, so the company has been looking for a domestic supplier, although it is now rumoured to be interested in buying a plant in Norway to supply stores in the region.

Lidl has caused controversy in the dairy industry across Europe, with its aggressive discounts on dairy products angering many domestic producers.