Ukraine News: Fear of gas embargo – trade prepares emergency products
Created: 05/13/2022, 12:04 p.m
By: Lisa Mayerhofer
Private label manufacturers are preparing for a possible embargo on Russian gas at full speed.
(Archive image) © Friso Gentsch
A gas embargo would hit the German economy hard.
Private label manufacturers are preparing for this with different strategies – including emergency products.
Berlin – Less gas has flowed to Germany since Wednesday.
Around ten million cubic meters less gas is currently arriving every day.
And there is no sign of the situation easing.
In view of the development, many companies are working flat out on plans in the event of a comprehensive gas embargo, including in the food industry.
Gas embargo: supply difficulties for private label manufacturers
The problems are not new.
In recent months, more and more manufacturers of food and household products have adapted recipes and packaging due to a lack of material, reports
Lebensmittelzeitung
.
Preliminary product manufacturers such as the chemical group BASF have repeatedly had difficulties in supplying raw materials to industry.
In the event of a gas supply stop, major supply disruptions are likely to occur, which could affect the entire industry.
"If natural gas supplies from Russia stopped overnight, this would lead to irreversible damage to the economy," BASF CEO Martin Brudermüller warned at the company's annual general meeting at the end of April.
Gas embargo: Plans for emergency products at private label manufacturers
According to
Lebensmittelzeitung
, some private label manufacturers are preparing for further cuts.
"We talk to retailers about what a basic formula looks like in a standard package," a private label household goods manufacturer who wished to remain anonymous told the newspaper.
In the case of major logistics problems, for example, there would only be one private label detergent, one toothpaste or one shower gel each in one recipe - "and that would be it," says the manager.
These products would then be delivered to all retail customers.
In other words: All supermarkets would receive the same branded detergent in just one recipe and packaging.
"I wouldn't call that a planned economy, but a war economy," says a manager involved in the
Lebensmittelzeitung
.
According to the report, these ideas are being played with by individual manufacturers of detergents and cleaning agents or oral care products.
In the food sector, on the other hand, the adjustment or omission of ingredients is more discussed - for example sunflower oil.
This should be replaced;
In case of doubt, variants can be deleted, industry participants report to
Lebensmittelzeitung
.
Other managers, on the other hand, were skeptical about the plans for emergency products.
A manager at the newspaper said this could not be a long-term solution.
A high level of flexibility is required rather than a standard product for all retailers.