Most food manufacturers and distributors do not believe that the inflationary spiral has peaked.

This is one of the main reasons for concern for most, as the pressure of raw material costs continues to increase.

Seven out of 10 businessmen in the sector believe that this will have an impact on their results, according to a survey carried out by Aecoc, the Association of Manufacturers and Distributors, which is holding its annual congress in Santiago de Compostela these days.

44% of the entrepreneurs surveyed are concerned about the changes in the mass consumption sector (includes food products, beverages and drugstores) that this drop in household income may cause, due to the increase in the cost of living.

Most companies in the sector raised their prices at the beginning of the year, although the pressure on costs is such that it is not ruled out that there may be more.

“If there isn't already, it's because we're not transferring it to the market.

But the increases in fare costs have not stopped.

Suppliers continue to knock on the door, conveying their need to raise prices even more”, the CEO of Eroski, Rosa Carabel, pointed out yesterday at the congress.

industry efforts

“The entire distribution is making a very relevant effort not to raise prices.

The margins are shrinking.

Suppliers raise prices because costs increase, but electricity and salaries also become more expensive for us... The pressure is brutal for everyone », he laments.

In Eroski, for example, the average inflation that they have transferred to the products is 10%, but the inflation of the basket «is lower, since the average ticket has increased by around 3.5%.

This has to do with the promotional effort we have made », he says.

Javier Uruñuela, general director of Hero Spain, also believes that prices "have not reached the ceiling."

“All the quotes we receive for raw materials continue to show notable inflation.

This is the case of materials such as glass containers or raw materials such as fruit.

“Commodities continue to rise.

We know that we will have to adjust our prices to reality as soon as possible", agreed Mané Calvo, from Grupo Calvo.

According to Aecoc, 34% of businessmen expect to worsen their results in 2021 due to the current context.

"We will raise the billing but because of the price increase, although the benefit will fall due to the increase in costs and adjustment of margins," says Uruñuela.

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