Berlin
Supermarkets are increasing the prices of their own brands by 31 percent, compared to just 15 percent for their branded products. All information at a glance.
one of Foodwatch A published evaluation of market data shows that the prices for private labels in discounters rose particularly sharply in the past year. The retail chains would have their cheapest prices private label products increased by more than 30 percent on average. In comparison, branded products only rose half as much. This development particularly affects people with little money who are dependent on cheap food.
Price development of own brands and branded products in supermarkets.
The data comes from the price app Smhaggle, which is based on the analysis of receipts. About 70 percent of the groceries in Supermarket have become more expensive, with retail chains’ own brands being hit the hardest in price entry. These include the brands “Ja!” from Rewe, “Gut& Billig” from Edeka, Milbona from Lidl or Milsani from Aldi. The prices of these products rose by an average of 30.9 percent. Branded products, on the other hand, only increased in price by an average of 14.5 percent in 2022.
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Record level of private label sales
inflation and high energy prices are making consumers increasingly turn to inexpensive private labels. These are not only significantly cheaper than branded products from well-known manufacturers, they often taste just as good. According to the Gesellschaft für Verbraucherforschung (GfK), the share of retail brands in terms of value increased from 40.6 percent in 2021 to 43.2 percent in 2022. That is around two percent more than in the previous year.
Why are private labels becoming more and more expensive?
In order to counteract the rising food prices, many grocers resort to a strategy that can mislead the customer. instead of the price increases the manufacturer and pass it on to the customers, the shelves remain empty and private labels are advertised instead. What many consumers don’t know is that supermarkets have increased the prices of their own brands even more. This often leads to customers spending more money on the supposedly cheaper private labels.
Also read: Lidl discounter increases its prices before Aldi
32.6 percent increase in the price of basic foodstuffs
The price rise also shows an analysis by Foodwatch. In an exemplary shopping cart with Aldi’s own brands, which contained everyday groceries such as pasta, rice, minced meat or tomato paste, the prices rose by 32.6 percent within a year – from around 45 euros to almost 60 euros. This does not even include fresh produce such as fruit and vegetables. Since the products of all entry-level own brands in the large supermarkets usually cost exactly the same to the cent, the price increase can also be transferred to other retail chains.
That’s what Aldi says about the price increase
A press spokeswoman for Aldi Süd said on request: “Before it price changes for articles, Aldi examines all possibilities of absorbing the additional costs elsewhere. Price adjustments only have to be made when this is no longer possible”. By avoiding unnecessary costs for brand management and packaging, Aldi would also permanently guarantee the best possible price for its own brands.
Foodwatch: Advertising campaigns disguise private label price increases
Foodwatch criticizes that supermarket chains disguise the price increase of their own brands in advertising campaigns and continue to promote them as particularly cheap. The rising prices of private labels hold several dangers for those affected by poverty: On the one hand, they pose a health risk, since many people can no longer afford healthy foods such as fruit and vegetables. This is particularly dangerous for children, since poverty-stricken people more often resort to high-calorie foods because they fill you up and are often relatively cheap.
The rising food prices have yet another dangerous aspect: they contribute to the aggravation of the general food poverty in Germany. By the end of 2021, around 12.5 million people were at least temporarily affected by food poverty, and rising prices have exacerbated this situation.
Also interesting: Poverty report – pressure to save up to the middle class
demands on the federal government
Foodwatch is calling on the federal government to increase the standard rate of citizen income and to offer free lunch in schools and daycare centers in order to cushion rising food prices and prevent malnutrition in children. In addition, VAT on fruit, vegetables and pulses should be reduced to zero healthy eating to make it as inexpensive as possible.
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