The head of the Edeka headquarters, Markus Mosa, criticizes the current price demands of the major manufacturers of branded products. “It is our job to ensure that people in Germany are supplied with food at reasonable prices. The global brand industry is endangering this order,” he told WELT AM SONNTAG.
The additional demands of the industry have added up to one billion euros since the end of the year, according to Edeka. Individual suppliers had demanded higher prices even before the previous round of increases had been implemented. “We know from our annual discussions that many price increase requests are not based on real cost increases. Instead, the reference to general inflation is used as a welcome argument to improve one’s own profit margin – in the interests of shareholders,” said Mosa.
“The expectation that prices will rise gives providers scope,” said Hubertus Bardt, Managing Director of the German Economic Institute. “After all, as a customer, I don’t know the cost structure of the manufacturers.” Especially at the beginning of a wave of inflation, i.e. in the current situation, some companies succeed in expanding their profit margins.