Manufacturers in the food sector are living an interesting phenomenon. They go up Industry prices in general, Upload the CPIgo up What they pay consumers in stores when they buy food and yet The rates That applies the food industry have been in free fall for almost a year. Moreover, the sector is facing its highest price decrease since early 2014. Behind that apparent nonsense there is a clear suspect: the effect of white brands and The fight that is getting rid of supermarkets.
We explain ourselves.
A percentage: 3.3%. Among the many indicators that periodically publishes the INE there is one that helps us better understand a key link of trade, which connects industry with the chain of distributors that take their merchandise to stores. The so -called Industrial Price Index (IPRI) records the oscillations in the right prices in That “first stage” of “internal market”, when the articles leave the factories and do not yet incorporate other added expenses, such as transport, marketing or VAT.
Your approach is different from that of IPCwhich takes into account the prices paid by consumers. The INE calculates the IPRI for large sectors every month and sometimes the indicator leaves us some surprise, as happened in June, when it showed an annual fall of the 3.3% In the food industry. What does that mean? That month food manufacturers decided to reduce their rates.
Why is it important? For what that percentage means. What reveals to us is a Price drop In the food industry, an adjustment of the rates with which the products leave the factory. The most curious thing is that this fall is not the dominant tonic in the industrial sector. On the contrary. Even beverage manufacturers saw in June how their industrial prices experienced A 2.7% rise.
He IPRI General registered one 0.8% rise and if We go down to detail We observed that the indicator rose in most industrial branches. It only retreated in oil refinement, the chemical, metallurgical sector … and food. The annual IPC rate, which reflects the prices paid by consumers, also It was positive: In June it rose 2.2%. If we talk about the specific IPC of non -alcoholic foods and beverages of the purchase basket, it also grew 2.8%.
It matters what … And imports when. If we look back, to the context, we observe two interesting data. The first is that the price index of the food industry has already a few months adjusting down. In June he scored a variation of -3.3%, but in May he had already done -2.7%and in April 2.2%. Actually the indicator has been going back.
The second fact that we must take into account is that the food industry I had a decade without registering such a pronounced price drop. To find a major year -on -year drop, you have to go back to February 2014.
What is the reason? The million dollar question. In a context of industrial inflationwith energy, a 3.5% And the increasing industrial prices, why do those in the food sector descend? In An article in which he delves into that phenomenon, Javier Romera, from The economisthe remembered yesterday that the reduction of the industry arrives in a context marked by a crucial factor: the rise of white brands and their growing competition In supermarkets.
THE GREAT PULSE OF THE SECTOR. The industry price adjustment therefore coincides with a key moment for manufacturers, marked by the pulse with supermarket chains and The growing weight that white marks have (those of the distributor itself, such as Auchan, Hacondado or Seleqtia). All this also after years marked by a deep inflationary crisis that has made the big chains that manage supermarkets try to contain prices.
The phenomenon is not new and Manuel Morales, manager of the IFA group, in An interview with The economist: “If they don’t react, brands are dead.” His notice, he remembered, comes in a context in which white brands have a greater weight in the linear of supermarkets.
“Already almost 50% add up and will continue to grow because they have increased quality and differentiating prices is increasing,” Morales foreshadowed. With that backdrop, the food industry has begun to Cut your profitability. In the first quarter it stood at 6.81% after falling for the first time since 2022.
Does the white mark grow so much? Yeah. Last year Promarca presented A report which shows that in just a five years, between 2018 and 2023, the presence of white -branded goods in supermarkets increased by 13%. The opposite path followed the articles sold with the brand of its manufacturer, which during that same period they retreated 23%. Promarca represents manufacturers and is therefore interested in, but their report provides a valuable track.
Promarca estimates that in a five years they have disappeared from the super more than 3,600 Products marketed by manufacturers outside the distribution chains while theirs, those of the white brand, added 1,800 only in the feeding and hygiene sections. The calculation was made after analyzing six large chains.
The Statista platform estimates that the market share of the white brands grew between 2005 and 2015, fell for a few years and would rebound again in 2019 until they were in 2024 in about 46%. Other studies consider that their mark on the linear of supermarkets is greater and already exceeds 50%.
Images | Arno Senoner (UNSPLASH) and Alcampo
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