An article published by Les Echos, the French daily newspaper, shows that FMCG prices in France are falling on the whole essentially because of two categories of foodstuffs.
Fruit and vegetables and non-alcoholic drinks are responsible for the fact that the FMCG sector's price trajectory is a negative one (down 0.8 per cent in 2014), according to l'Association nationale des industries alimentaires. The deflation is the most significant of its kind for any EU member state.
The price of fresh produce fell by a considerable 4.1 per cent, while the cost of non-alcoholic drinks was down by 2 per cent. The reason for the former is, highly contrary to 2013, copious supply and ordinary demand. In the latter's case, grocers are doing everything in their power to pull prices low, as private-label soft drinks, for example, have lost ground to Coca-Cola, PepsiCo and Suntory (makers of Orangina Schweppes).
Also causing the overall drop in FMCG prices in France are price reductions of the most popular condiments (down 3.3 per cent), and chocolate and honey (down 2 per cent).
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Peter Donnelly.
