Vivatis CEO Gerald Hackl is annoyed by the criticism of the price increases for groceries. The fact that the cost pressure on the industry is enormous is hardly noticed.
“Tedious and difficult” – this is how Gerald Hackl describes the times for the Vivatis Group he manages, which includes brands such as Knabbernossi, Maresi and Inzersdorfer. The fact that raw materials, packaging, energy and personnel are becoming more expensive is also something the Linz-based company is under pressure: Vivatis will face additional costs of 150 million euros next year.
Daily groceries almost 15% more expensive than in 2021
Price increases for certain groceries are inevitable – not for the first time in recent months. From oil to butter to cheese: daily groceries are almost 15% more expensive than a year ago, Statistics Austria recently calculated.
The fact that the food industry is the center of attention when it comes to price increases hurts Hackl: “It is acceptable that fuel becomes more expensive. People like to hit the groceries and so do we – I think that’s a shame.” He is often confronted with the fact that people think that “we are doing well because we are raising prices”. The cost pressure behind it is hardly noticed.
Subsistence premium for those particularly affected
Vivatis pays cost-of-living bonuses to low-income employees across all group companies. What is currently in high demand from customers? The trend is clearly towards discounters and entry-level price brands.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
