Kaufland and Co. as price drivers in the crisis?
allegations and reactions
Created: 2022-11-18, 4:25 p.m
By: Dominik Jahn
Grocery retailers between price wars and price drivers?
Kaufland, Lidl and Co. are said to be the winners of the crisis.
Consumer center criticizes the constant price increases for customers.
Price increases of up to 80 percent - the food industry has been in the spotlight again in recent weeks, as echo24.de reports.
But are the high prices in supermarkets and discounters always justified?
Kaufland, Lidl and Co. have responded to requests from the editors.
The dealers are criticized by experts and various associations.
Recently, however, the media has repeatedly reported on a fierce price war between dealers and manufacturers.
In May 2022,
echo24.de
had already checked with Kaufland, Lidl and Unilever.
The British company is one of the largest manufacturers of consumer goods in the world and reacted to price increases with a clear message to retailers and customers.
And how are the reactions now?
Who is the winner in the crisis?
Consumer center criticizes price increases at Kaufland and Co.
Customers have noticed that prices for many products have continued to rise dramatically in recent months.
As the consumer advice center writes, this is also proven by the data from the Federal Statistical Office.
In addition, the experts assume that forecasts are not easy, but that food prices will probably remain high for the time being and will even increase further.
Company: | Kaufland |
|---|---|
Headquarters: | Neckarsulm |
Founding: | 1984, Neckarsulm |
Industry\t | food retail |
According to the consumer center, many factors play a role.
It says:
"The costs for energy, fertilizers and animal feed have risen sharply, the shortage of workers and the minimum wage are making personnel costs more expensive"
.
But here, too, one becomes clear.
Because not all price increases are always transparent and are based on higher production costs.
Kaufland, Lidl, Aldi as price drivers in the crisis?
This is how companies react
In response to a request from
echo24.de
, the food giants such as Kaufland, Lidl and Aldi only provide very little information.
In general, Kaufland does not want to comment on its own pricing.
At Aldi Süd it says: "Before there are price adjustments to our items, we examine all possibilities of absorbing additional costs elsewhere - also by reducing our margin".
They will remain true to the discount principle and of course they will also reduce sales prices
"if purchase prices fall
".
Lidl does not comment at all.
The companies also responded to inquiries from the BR political magazine
Kontrovers
.
Rewe justifies
“the price increases in food, among other things, with increased raw material costs.
Edeka says one reason is the high energy prices
.
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Trade association and brand association express themselves on the subject
The German Trade Association keeps out.
The association answered a question about price increases when shopping and the price war between Kaufland, Lidl and Co. with the manufacturers as follows: “Pricing and price negotiations are a central part of business decisions, so we as an association, the – also for antitrust reasons – has no insight into the negotiations or contracts.”
brand association
According to its own definition, the Markenverband offers a wide range of information, advice and services in cooperation with its affiliated organizations - the organization for advertisers in the Markenverband (OWM), the Gesellschaft zur Forschungswesen des Markenwesens (G·E·M) or the VKE-Kosmetikverband on the subject of branding.
The focus of work is also the protection of intellectual property and the fight against brand and product piracy as well as the strengthening of competition and the development of trademark law and trademark administration.
The Markenverband, on the other hand, has a clear opinion on the current situation in the food trade.
It says:
"We call for a return to solution-oriented and fact-based discussions - despite all the tough negotiations.
The accusation by parts of the trade that industry is the driver of inflation blatantly contradicts the facts.
We have looked at the period since March 2022 and are noticing a significant price increase for private label too.
It is likely to be due to economic necessities.
However, the price increase of private labels is consistently higher than that of branded articles.”
Criticism of the prices at Kaufland, Lidl and Co.: the Federal Cartel Office is investigating
As reported by the broadcaster BR and the political magazine
Kontrovers
, the Ifo Institute in Dresden
“has examined the development of food prices and has come to the conclusion that the increased costs do not justify the price increases”
.
According to the report, even the Federal Cartel Office is currently examining some complaints about food prices and possible "coordinated behavior" among the retail chains.
The Bavarian Consumer Center also shows indications
"that retailers want to push through higher food prices in addition to the increased costs"
.
According to the BR article, the President of the Bavarian Trade Association rejects a price brake for staple foods, as is already the case in some EU countries.
This means that customers from Kaufland, Lidl, Aldi and Co. will continue to be expensive when shopping.
Kaufland, Lidl and Co. between price wars and price drivers?
According to the BR report, the retail chains deny "wanting to capitalize on the crisis and blame the manufacturers of branded products".
With these, the trade is currently partially in a price war.
And brings more problems for the customers.
In addition to price increases for numerous products, numerous brands are currently missing from the supermarket shelves, as
echo24.de
has already reported.
In addition, the Federal Egg Association (BVEi) is now warning of an egg bottleneck.
And the paper industry has already sounded the alarm.
Kaufland has already commented on a possible toilet paper shortage and talked about the consequences.
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