What discussions has the Minister had with supermarkets regarding reports that supermarket own-brand products have increased in price by up to 25 per cent?
The Welsh Government engages with large food retailers through the UK Retail Forum, who and in particular has bilateral relations through my Food Division - Trade Development Programme.
UK food prices have increased markedly due to a combination of factors and food inflation is currently at 19.1%. Underneath this headline figure there is considerable variation in product price increases depending on the product area. Marked price increases have happened to both shop own label and branded products. Most retailers offer several product ranges of own label – value / economy, mid-market, and finest. Generally own label products have a lower profit margin and are cheaper than branded equivalents. The sales of own label is up 13.2% compared to branded products’ who have increased by 4.6%. Consumer buying trends has moved to cheaper products in response to the cost of living.
The UK grocery market is exceptionally price competitive compared to other countries. Food price inflation in the UK is in the middle of the range of inflation increases when compared to other European countries.
The Competition and Marketing Authority has announced an investigation into whether competition failure is a contributory factor in higher grocery prices, and the Welsh Government awaits the outcome of this work with interest.