Competition Commission for supermarkets: Fixed prices in the household basket – 2024-03-01 06:17:20

The household basket kept unflavored cow’s yogurt prices consistently low for one year, (between 1.2.2022 and 1.2.2023), while prices outside the basket rose, according to the Competition Commission.

However, the basket does not seem to have significantly influenced consumer preferences.

This results from a mapping of the conditions of competition in unflavoured cow’s yoghurt carried out by the Competition Commission and it is reported that, in terms of price developments, during the period of application of the household basket, the weighted average price of the products in the basket remained almost constant while the price of products outside the basket increased by 17 cents.

As stated in the findings of the mapping made public today (31.1.2024), “in general supermarkets keep the prices of products in the household basket stable, especially those of the private label” while it is added that “81% of product sales within of the household basket by volume comes from private label products, which are consistently priced lower than branded products, although the share of private label products in total sales has remained relatively smaller.”

In terms of consumer preferences, therefore, there was little shift towards private label products with the percentage of sales (in volume) of private label products sold by supermarkets and participating in the household basket varying between 3.2% and 4.5%.

The mapping

The Competition Commission reminds that “it conducts a mapping of competition conditions, in all markets or all sectors of the economy, when this is required for the effective exercise of its powers (no. 14 par. 2 approx. Law 3959/2011) ” and that in this context it decided in February 2023 to conduct a mapping of competitive conditions, inter alia, in the unflavored cow’s yogurt market.

The goals of mapping are:

1. the evolution of the market shares of the 11 largest supermarkets (downstream market)
2. the evolution of the shares of suppliers (private label and branded products) in the sales of the 11 supermarkets (upstream market)
3. the effect of the household basket mechanism on the prices of branded and private label products
4. the effect of the household basket mechanism on consumer shopping habits by comparing branded and private label products, within and outside the household basket.

According to newsit, as part of the mapping, questionnaires were sent by the general Directorate of Competition to 11 supermarkets, which gather a share of more than 95% of the food retail sector. The period for which data was obtained is the 52 weeks between 1.2.2022 and 1.2.2023 (“Reference Period”).

The main results are as follows:

• In terms of market size, total supermarket yogurt sales during the Reporting Period amount to €133.4 million, with a weighted average price of €3.02 per kilo.
• In total sales, the largest market share (in terms of value) is held by “Sklavenitis” (30-40%), followed by “AB-Vassilopoulos” and “Lidl” (10-20%). The “My Market” and “Galaxias” supermarkets have a market share between 5% and 10%, while the other supermarkets have a market share between 0-5%.
• Based on the sales value of branded yogurts, the largest market share in sales is held by “SKLAVENITIS” (30% – 40%), followed by “AB-Vassilopoulos” (15% – 20%).
• Based on the sales value of private label products, the largest market share in sales is held by “LIDL” (40% – 50%), followed by “SKLAVENITIS” (20% – 30%), “AB-Vassilopoulos” (10% – 15%) and “My Market” (5% – 10%).
• In the period 15.11.2022 – 31.1.2023 for which data was collected on the operation of the household basket, no significant change is observed in the market shares of supermarkets.
• The number of yogurt suppliers is 71. The largest market share in sales (based on value), regardless of whether it is branded or private label products, is held by the company “KRI KRI”, followed by “FAGE” and “ELL. DAIRY.” A small market share, between 0-5%, is held by the companies “FRIESLANDCAMPINA”, “NUMIL”, “KOUKAKI”, “MEVGAL”, “Naabtaler”, “EVROFARMA”, “SERGAL” and “STAMOU”, among others.
• The largest market share in the sales (in value) of supermarkets, in branded products, is held by the company “FAGE” followed by the companies “ELL. DAIRY” and “KRI KRI”. In relation to private label products, only two suppliers have a share of more than 10%, i.e. the company “KRI KRI”, which is the most important supplier by a wide margin compared to the others, and the company “KOLIOS”.
• In terms of price developments, during the period of implementation of the household basket, the weighted average price of in-basket products remained almost constant while the price of out-of-basket products increased by 17 cents.
• Overall over the reporting period, the prices of products outside the household basket increased, but within the basket, product prices showed remarkable stability. In general, supermarkets keep the prices of the products in the household basket stable, especially those of the private label. In particular, during the 1st week of implementation of the household basket, the average price for products in the basket was 2.19 euros per kilo, while the corresponding price for products outside the basket was 3.29 euros per kilo. This difference increased by 15 minutes by the end of observations at week 52. It is worth noting, however, that 81% of household in-basket sales by volume come from private label products, which are consistently priced lower than branded products, although in total sales the percentage of private label products has remained relatively smaller.
• In terms of consumer preferences, there was little shift towards private label products during the reporting period. In the 1st week of observations, sales (in volume) of private label products corresponded to 36.3%, while in the 52nd week of observations, the percentage increased to 41.9%. In particular, the percentage of sales (in volume) of private label products sold by supermarkets and participating in the household basket ranged from 3.2% – 4.5%.
• In the period 15.11.2022 – 31.1.2023 for which data was collected on the operation of the household basket, the basket does not seem to have significantly influenced consumer preferences.

Read also:

Patras – Traffic: “Rain” calls and license plate removals – Drivers’ ears don’t “sweat” VIDEO

Achaia: Farmers remain at roadblocks – With tractors today in the Region PHOTO

Today the delivery of the “Aktio – Amvrakia” road axis in the presence of Mitsotakis

Military service: What changes are coming – When will they take effect

Volos: He covered his ex-wife with alcohol, threatening to burn her in front of their children