Posted 29 November 2023
Food for thought: Shoppers overcharged as grocery suppliers 'pushed up prices' on branded goods - What have you seen increase?
Surprised? Probably not! But the competition watchdog has found that shoppers have been overcharged on various goods. Increases i've seen are Baked beans and of course pet food, which seem to have rocketed.
Also not to mention 'Shrinkflation' Where you pay the same but actually get less for your cash.
Suppliers of branded goods including baked beans and pet food have "pushed up prices by more than their costs", according to the competition watchdog.
The Competition and Markets Authority (CMA) has been examining 10 product categories in a bid to see if shoppers, already struggling amid the continuing cost of living crisis, are being ripped off.
It said that while some increases were justified, to cover rising costs from elements such as energy and ingredients, there was clearly some profiteering.
"The evidence collected by the CMA indicates that, over the last two years, around three-quarters of branded suppliers in products such as infant formula, baked beans, mayonnaise, and pet food - have increased their unit profitability and, in doing so, have contributed to higher food price inflation", the statement said.
It went to explain, however, that the shifts were likely to have backfired as shoppers had clearly switched to cheaper, supermarket own brand, alternatives in a bid to save cash.
The regulator will hope that the competition will help prices of branded goods come down.
The CMA said that more study was needed, including in the baby formula sphere that has been the subject of work by Sky News and seen the World Health Organisation declare that families were being "exploited".
However, it did find evidence of unjustified price increases and cited concern that two companies control 85% of the market.
Also
The CMA also declared that it was going to review supermarket loyalty schemes in the next phase of its investigation.
Front and centre of that is the offering of promotions only to customers who sign up to their loyalty cards.
Source
Which? Research + Source
Chocolate has overtaken biscuits to become the fastest rising in price of all 20 categories in our research. Crisps and cereals are also among the worst-hit categories.
Source: Which? Supermarket Inflation Tracker. The three-month figure may be more robust as it covers a longer time period, however the one-month figure will reflect recent changes in inflation more clearly.
Also not to mention 'Shrinkflation' Where you pay the same but actually get less for your cash.
Suppliers of branded goods including baked beans and pet food have "pushed up prices by more than their costs", according to the competition watchdog.
The Competition and Markets Authority (CMA) has been examining 10 product categories in a bid to see if shoppers, already struggling amid the continuing cost of living crisis, are being ripped off.
It said that while some increases were justified, to cover rising costs from elements such as energy and ingredients, there was clearly some profiteering.
"The evidence collected by the CMA indicates that, over the last two years, around three-quarters of branded suppliers in products such as infant formula, baked beans, mayonnaise, and pet food - have increased their unit profitability and, in doing so, have contributed to higher food price inflation", the statement said.
It went to explain, however, that the shifts were likely to have backfired as shoppers had clearly switched to cheaper, supermarket own brand, alternatives in a bid to save cash.
The regulator will hope that the competition will help prices of branded goods come down.
The CMA said that more study was needed, including in the baby formula sphere that has been the subject of work by Sky News and seen the World Health Organisation declare that families were being "exploited".
However, it did find evidence of unjustified price increases and cited concern that two companies control 85% of the market.
Also
The CMA also declared that it was going to review supermarket loyalty schemes in the next phase of its investigation.
Front and centre of that is the offering of promotions only to customers who sign up to their loyalty cards.
Source
Which? Research + Source
Chocolate has overtaken biscuits to become the fastest rising in price of all 20 categories in our research. Crisps and cereals are also among the worst-hit categories.
Source: Which? Supermarket Inflation Tracker. The three-month figure may be more robust as it covers a longer time period, however the one-month figure will reflect recent changes in inflation more clearly.
Community Updates
206 Comments
sorted byI have rarely shopped there and actually been charged correct price for all items. Customer services will write the wrong prices down in a book and you'll often see the same thing listed loads of times.
It happens enough that I now assume it's deliberate.
Think most do have a favourite branded product though, that maybe can't get to the same levels as a branded product or having a child, like myself, with special needs, who will certainly know the difference but for the majority, it's certainly worth trying a 'lower value' brand and seeing how you get on. (edited)
Guess tap water must be the only decent thing available in the North East (not including Hartlepool water). Tastes like.....water. Doesn't fur up and makes excellent homebrew. Chin chin
27p for a tub early last year. Now it’s pushing 90p.
Also, blatant ripping off by supermarkets listing two prices - one regular over-inflated price and one ‘discounted’ price if you sign up to their loyalty card scheme. The discount price is just the price it’s always been!
Forcing you to give them your data in order to get prices that were always the non loyalty card price before
I work in Procurement and see this often.
I think a lot of us with friends in the haulage industry can probably guess what is contributing. We're just not allowed to say. The UK is a proper basketcase right now tbh. (edited)
The true underlying issue here is the monetary system been mismanaged and politicians who burden society....well just being a politician and contributing absolutely nothing to the wider economy.
Government only 'eats' is produced noting to benefit the economy (the cost of government is not calculated in inflation statistics, why because its a system which keeps growing and adds to the wider economy breaking down, no-one is accountable for mistakes, lets have some bs report which results in some new committee or think tank bs)
Biggest problem here is the failure of gv'ment polices, (which maybe caused by business who are creating monopolies through lobbying, legal jargon for pay-offs)
Gv'ment is supposed to look out for the interest's of the people who elected them into office but what's crystal clear its gv'ment and international business who are sleeping in the same bed greasing each other up with extracting wealth from the man/woman on the street.
Pitch forks should have been out long ago. (edited)
Everyone I know is feeling the pinch. Everything seems a bit grim.
Seem to be a lot of shiny new second homes and luxury yachts about down my way though, so I guess it is all working as they want presently.
Oral B have also more recently done the same thing.
Bought a bulb of garlic for 75p - used to be 30p.
Anything that's on 'offer' is artificially' increased before being brought down to it's regular - still higher than 2 years back - price.
They are extracting the urine!
It's supposed to be slightly imperfect but I've had a good look and the only thing I can find is that one of the arms is slightly longer than the other two...
Not really!
COUNTRY Working as expected....
As long as you don’t mind what you get there are lots of bargains.
Waitrose fresh counter is best for the meat and fish - often they don’t even need using for 1-3 days from purchase! Got 3 beef ribs for £2. 2kg of scrag end lamb (neck on the bone) for under £3.
Just don’t come to my local Waitrose ok.
It is gouging, taking advantage of ignorance, or profiteering. Also known as just standard business practices
and robbery for what you get everything has gone smaller why is it that no one in government or monopoly commission ( if we still have one ) do anything about it ? ( GOV wont as they receive loads more in tax )
apples will be the size of a golf ball soon just as an example.
the country as a whole need to stand up but even now on speaker`s corner London
you spout anything out against anything you are soon escorted away (food, petrol, gas /electric you can go one forever )
if only everyone could take a stand all at once !
Wasn't there a show on TV that's been running for years on this, swapping families branded purchases for supermarket own brands and saving a fortune?
Nothing new.
The brand companies like Unilever are recording record profits the last 2 years - they are increasing prices unrelated to inflation- just because they can.
As long as we buy them, they will continue to do this.
Cue a few customers barricading that section with their trolleys and an absolute bun fight, people arguing and trying to grab items as they were added.
I just thought, "I don't want it badly enough to humiliate myself" and carried on shopping. Not sure if it was just that one evening or it was like that every night!
Most supermarkets are a bit more civilised, though..
Side by side, visually identical. Taste, identical. Percentage of more expensive ingredients like nuts and fruit, practically identical. So there you have it! Literally just paying £2 more for the expensive branding.
Branded items I avoid like the plague, pepsi/coke is 3 times the cost of supermarket cola, same with coffee as a 200g jar of Nescafe Gold Blend being £6-£7 compared with supermarket versions at £2.50.
Observing typical shoppers at Costco is a real eye-opener. People loading their oversized trolley with extra large packs or bulk buys. They get home and can't fit half of it in the fridge or cupboard, end up throwing a lot of it away. A neighbour went to Costco for a cheap Christmas Tree and came home with £600 of grocery shopping they didn't need.
The same problem with people who repeat order their online shopping without checking what they actually need. I know someone who had 7 cucumbers in the their fridge and still ordered another one on their weekly online shopping. They all ended up in the bin!
It used to be a 'fun' challenge, price comparing, finding cheaper options in different aisles.
It's totally miserable. Another trick is the classic price tags vary between £/g Vs £/unit. Stood there doing math on my phone.
When you have got people voting hot on things that are not even remotely close to a good deal. The uneducated come along and see all the heat, think it must mean it must be a good deal, and buy it.
Your "uneducated" remark did remind me of Micky Flanagan though, "It tastes the same but it costs less!". (edited)
We only buy a few branded items now.
One being Lurpak spreadable, even though it's dropped in size to 440g!
Also I can't have any beans bar from Heinz
All the others can do one, Kellogg's, Mcvities and Branded shampoo's were all bought by us, no we just get Adli brand one's. Just as good and we save a fortune
So one has to understand why they act dumb otherwise they will have to be accountable.
Scary thing is the problems we facing here in UK are all happening around the world the different degrees, in history that's never happened before, they are literally playing it by ear these so called experts and they are always 'reactive' to problems no active because they haven't got a clue where the problems will manifest, 2008 is creeping upona again but the problems back then were never really resolved so toay we have compounded problems which will potentially be very very messy.
Here's something which is having no news/press at all.
reuters.com/bus…22/
When CEO says no problem, you better believe there is a fire burning. (edited)