Haribo gummy bears, Pringles, Ben’s rice or Philadelphia cream cheese – these branded products will soon be off the shelves of Billa, Penny and Adeg. The German Rewe Group wants to remain tough in the dispute about price increases. He sees himself as a “protective shield for consumers”, explains Marcel Haraszti, the boss of Rewe Austria.
According to Haraszti, no agreement has been reached in the dispute over the price demands of some major international brand manufacturers such as Mars. In the Ö1 “Morgenjournal” he rejected the fact that Rewe had even tightened the price screw with his own brands such as “Clever”, as brand manufacturers claim.
Rewe boss: Brand manufacturers have higher margin
However, the retail group is prepared to pay slightly more for domestic goods than for the offers of international brand groups. Haraszti emphasized that in the current crisis everyone has to do their part – with retail with a range of one to two percent, but brand manufacturers up to 20 or 30 percent. Rewe itself has already commented on its own margins.
No shorter opening hours planned
Haraszti declined to comment on the fact that competitor Spar says it has no problems with its brand manufacturers. In any case, Rewe’s warehouses are currently full, he emphasizes. The price increase would be responded to with more ‘smart’ products and discounts. As for energy savings, the Rewe Austria boss said the retail group was working on energy efficiency, but shorter opening hours were not an issue. An hour less would yield almost nothing and is not customer-friendly.
Wave of closures feared by local suppliers
Grocers and local suppliers are more concerned about high electricity prices, according to the Chamber of Commerce, warning of a wave of closures looming in 2023. By the end of next year, the number of communities that have run out of local suppliers could rise from 600 to more than 1,000. According to Buchmüller, the large supermarket chains are also affected by the increase in electricity costs. “But you have the stamina,” he hinted at the higher liquidity, creditworthiness and market power of the market leaders. They would have more opportunities to counter and dive through.
Buchmüller calls for government support
It is clear to Buchmüller that politicians in Vienna and Brussels must tackle the root of the problem. The cause of the problem is the pricing on the European electricity market. The gas for power generation should be supported by the state. In any case, the federal government’s energy cost subsidy is not helping the local suppliers. From January 2023, plannable electricity prices will be required. With the energy cost subsidy, whereby the state covers 30 percent of the additional costs for energy, the companies would still have to bear 70 percent of the additional costs.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
