Price increases mean that consumers increasingly choose cheaper products and own brands when shopping. This puts increasing pressure on manufacturers’ brands. Because they have to give up space on the shelves. Moreover, the producers of their own brands often remain anonymous and therefore interchangeable.
“Valuable products are purchased less often. Beef, organic and regional are in huge decline, but demand for brands with an entry-level price is growing.” This is how Unimarkt boss Andreas Haider describes the changes in food purchasing as a result of price increases in all areas.
Cheaper products, including the retail chains’ own brands, are increasingly ending up in consumers’ shopping carts. That is understandable, because many people have to tighten their belts.
“Products of the lowest standard”
At the same time, however, this development is fatal for manufacturers of branded products: they often cannot keep up with the price war, the battle for shelf space is becoming increasingly fierce and producers are also interchangeable with their own brands because they often remain anonymous.
Stefan Lindner, chairman of Berglandmilch, does not mince words: “Products from the lowest level are coming in here – that upsets me.”
Josef Braunshofer, director of Austria’s largest dairy, knows that development cannot be stopped: “There will be fewer manufacturer brands in the future. We are doing everything we can to ensure we stay there.” Brands such as Schärdinger, Lattella and Co. enjoy a high level of trust and we are building on that.
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.
