French representative body L’Association Nationale des Industries Alimentaires (ANIA) has declared its 'strong support' for the country's new 'loi issue des Etats généraux de l’alimentation' (EGA), which restricts the depth of promotions on food products.
The new law was announced on 2 October, and in his comments on its introduction, President Macron called for a "new state of mind" when it comes to promotional strategy in the food sector.
In its own statement, the ANIA said that the current price war taking place in the supermarket sector is 'destroying all value in the chain', noting that the promotion-heavy culture in France is impacting both farmers and food suppliers, whose margins are at their lowest level for 40 years.
'It was necessary to stop this destruction of value,' the group said. 'The right price is not the lowest price!'
Legal Requirements
According to the EGA legislation, retailers will no longer be able to sell products at a loss, and are also restricted from enacting 'permanent promotions' on certain products, as well as a host of other measures.
Following its launch earlier this week, ANIA is calling for a 'very fast implementation' of the new legislation, with action taken against those that do not adhere to the new laws.
"The survival of the entire industry is at stake," said Richard Girardot, President of ANIA.
"ANIA is committed, we will be responsible and consistent. We are ready to take stock of these measures in two years with a focus on the income of farmers but also the health of our industrial fabric."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
