between manufacturers and mass distribution, the battle is stronger than ever

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FRANCE 2

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S. Lanson, G. De Florival, Y. Moine, H Pozzo, M. Bitton – France 2

France Televisions

Food prices have increased by 3 to 4% since the start of the year, but industrialists in the sector assure that it would in fact be necessary to go up to 10% to compensate for the increase in costs for farmers. Negotiations are underway with distributors. Who really foots the bill?

+15% for pasta, +11% for flour, +10% for oil. Prices that have exploded for a year. But where does the money for this increase go? Farmers, manufacturers or mass distribution? A consumer brand assumes its positioning: always favoring breeders. A box of 12 eggs has just gone from 3.85 euros to 3.89 euros. “These 4 cents allow the producer to continue to live from his profession”, says Nicolas Chabanne, president of “Who’s the boss?!”. More income for farmers, because they suffer from the increase in all raw materials, especially animal feed.

Manufacturers see the price of energy and packaging rising. For this brand “Who’s the boss?!”, the large distribution does not always play the game on the income to be ensured to the producers. Negotiations on price increases, on margins, are about to resume. Between manufacturers and mass distribution, the battle is stronger than ever. The last negotiations in March resulted in a price increase of around 3% for the consumer.

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