The Truth About ‘Shrinkflation’ and Product Pricing: Insights from the President of ANIA

2023-09-07 06:42:36

If he pleads for better consumer information, the president of the National Association of Food Industries insists on the fact that distributors have accepted the products in question on their shelves.

Jean-Philippe André tries to calm things down. For the past few days, manufacturers have been the target of virulent criticism from distributors, consumer associations and even politicians who accuse them of practicing “shrinkflation”, i.e. reducing the weight of certain products without reducing the price, or even increasing it.

Alex Reed of the morning of RTL this Thursday, the president of the National Association of Food Industries (ANIA) evokes “the need for a brand to control psychological thresholds”.

“Beyond certain prices, rotation will drop. You have a 300 gram sachet, if you put it at 280 grams, you sell it better and the distributor knows it too. What undoubtedly needs to be improved is is consumer information”, explains the head of ANIA.

“There are no scams on these products,” adds Jean-Philippe André.

If progress can be made in terms of informing customers, the representative of the food industry also recalled that “the distributors who have these products” on their shelves “have accepted them as such”. “The list of products published 2-3 days ago concerns 41 food products while there are 20,000 food references in an average supermarket”, he relativized.

“We must not give the impression that there are thieves on one side and white knights on the other”, he underlines.

Anticipating trade negotiations by three months is “materially impossible”

In addition, Jean-Philippe André explains that the prices displayed do not depend solely on the commercial negotiations carried out in France because a certain number of brands are obliged to negotiate abroad upstream. On this subject, he subscribes to the desire displayed by Bruno Le Maire to accelerate the effective reduction in prices on the shelves of supermarkets. “Our first requirement is to say that we have lowered prices for 1,800 products, let’s check that this is done,” he said.

“I think there will be a real advantage, it will silence the music that goes around according to which some want to negotiate, others don’t. We all sit around the table and we renegotiate everything”, asks Jean-Philippe Andre.

However, he is skeptical regarding an anticipation of trade negotiations up to three months while the distributors and the Ministry of the Economy formulated this objective at the end of the discussions in Bercy last week: “If we can accelerate d “One month and negotiating on January 31 is good. Three months is materially impossible.”

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