Inflation: food manufacturers promise shelf price cuts until September

Faced with inflation, the agrifood giants want to show their credentials. Accused by some players of keeping prices soaring by pocketing comfortable margins along the way, manufacturers have engaged in renegotiations with distributors, and the first results of these exchanges should be visible in the coming weeks, said the boss. of the National Association of Food Industries (Ania).

Asked about FranceInfo this Thursday morning, Jean-Philippe André recalled that of the 45 agrifood giants, “80% will activate levers to ensure that, in the next three months, shelf prices drop”. In the majority of cases, however, this will not be a permanent setback, but rather temporary promotions: the manufacturers concerned still have to absorb high costs upstream, as the prices of raw materials have not fallen, argued the representative. The shelf prices of certain products, such as those made from cereals, poultry or coffee, could benefit durably from the fall in raw materials.

The promotions will have “a real impact for consumers”, assured the president of Ania, from the first half of July and for three months. They will be visible on 200 to 300 national references, and the price reductions generated should range between “7.5% and 10%”, until September, according to Jean-Philippe André. "You are going to have four, five brands that will be able to drop [...] and all the others will do promotional operations that were not planned," he explained. The products concerned will be varied, all of the 75 largest food companies having to offer operations, according to the chairman of the executive board of Haribo France. These actions should also be financed by manufacturers, who will take on their margins.

The boss of Ania, however, recalled that he did not believe in a return to pre-crisis prices. “We will never return to that level”, all the elements – including salaries – having been “turned upside down”, he justified himself. "It is fair and honest to say that we will not return to 2019 levels, that's for sure," he said. An observation similar to that drawn up by INSEE: according to national statisticians, inflation should slow down considerably by the end of the year, but without going as far as deflation. "Consumer prices of food products could slow down significantly, without necessarily falling on average," they summarized in their note.

The boss of Ania also protested against the idea that its members would have benefited from particularly massive margins thanks to inflation. Based on a past report from the General Inspectorate of Finance (IGF) for the year 2022, he challenged the 48% margin rate put forward by INSEE. "It must be counted on the fingers of one hand, a company, out of the 75 [largest agri-food groups] which tells us today 'I have maintained my level of margin'", he was annoyed.

If there will be no return to the prices of recent years, manufacturers therefore promise to play their part in the fight against inflation. It remains to be seen whether distributors will pass on these price cuts and promotions to the shelves. On Cnews, Thursday morning, the Minister Delegate in charge of Trade confirmed that consumers should see certain "reductions" in prices on the shelves, from July, while warning the actors that the State intends to monitor the situation closely. “We will be extremely vigilant so that price reductions are passed on,” warned Olivia Grégoire.