Food firms raising prices unnecessarily...

[Workingman]

So says Tesco's boss.

He claims that producers are raising prices excessively. If that really is the case then why are Tesco and other supermarkets still sellling those products? By doing so they are effectively colluding with producers to rip the public off.

Oh, I think I know. The products in question are all "brands" and most of us are suckers for brands. If Tesco's mark-up just stays the same they win big time. 10% on a tin of beans that were 51p a year ago compared to 10% on the same tin now at 79p might not seem much, but with millions sold every day it soon becomes a very big pot. And it is not just beans, it is other veg (tinned or frozen), sauces, cereals, sweets, cakes, bread, burgers, chips... the list goes on.

I guess every little helps....the supermarkets and producers.

[TheOstrich]

Interesting that Waitrose have deliberately stopped selling Warburton products, and also Mornflakes (made by a small Cheshire (?) company).
They say they are stocking too many products and need to rationalise their supply chains, but I suspect money plays a part in the decision and it apparently hasn't gone down well with shoppers.

[medsec222]

I was saying exactly the same thing to my OH this afternoon following a visit to M&S. Although they have kept one or two basic items down in price, the majority of their foodstuffs has gone up in leaps and bounds. Gone are the days when you could buy a medium chicken for £3.50. It is startng to look like a rip off by the supermakets in general. I shop at Lidl occasionally as their prices aren't to bad but I prefer Morrisons for my big shop, although I tend to be careful and look for bargains.

[Workingman]

There are a few problems here.

If one supermarket went it alone and replaced big brands with unknown or own-brand alternatives, or even limited the shelf space for brands, customers would leave in droves. They would all have to do it in unison - acting like a cartel - in order to keep the producers in check..

The good news for them is that if they keep stocking the big brands it allows them to push up prices on their cheaper offerings even though there might be no cost need to do so.

Either way we customers lose.