From the beginning of July, 39 giants of the food industry agreed to lower their prices or offer promotions on approximately 1,000 products. This decision is the result of negotiations launched between the Ministry of the Economy and the industrialists several weeks ago, according to information from Parisian confirmed by franceinfo. Last June, food inflation was still at 13% (against 16% in March) compared to the previous year, according to provisional data. While price increases are slowing down, food prices continue to rise year on year.
Wave reductions
According to the Ministry of the Economy, the reduction promised by manufacturers will be between 5 and 7% of the price of products on average. A first wave will lower the price of certain references from July, while others will wait until August, or even September. These products are mainly those whose raw material prices have started to fall in recent months.
Initially, Barilla and Panzani pasta or Lessieurs oils will cost consumers a little less, for example. Haribo sweets will also see their prices drop by 7.5%, while ten Bonduelle canned references will lose 10%. Some brands prefer to offer promotions on products like Danone or Coca-Cola Zero, which can be purchased under “buy one get one free” discounts. Fewer brands have decided to opt for this price reduction strategy, but “the discounts are stronger” in this case, Bercy told the Parisian.
Not all manufacturers play the game
Already in June, the government asked manufacturers to extend the “inflation basket”, set up from March 2023 to ensure access for low-income families to basic food and daily products, which had made it possible to lower the prices of 13% below the level of inflation according to the government. Most groups, such as Système U, Carrefour or Intermarché, had agreed to an extension of the basket until the end of 2023.
For the time being on this new operation, only 39 brands out of the 75 largest have agreed to play the game of negotiations in the face of inflation. At the beginning of June, the Minister of the Economy Bruno Lemaire had threatened to publish the list of those “who refused to return to the negotiating table and who did not want to lower retail prices while wholesale prices are falling. “. No sanction is currently retained, out of respect for business secrecy, according to the ministry.