Ridiculous: this is how people are profiting from our far too expensive groceries

Those expensive groceries: they’re enough to drive you crazy. But what really makes us angry is that many major corporations appear to be profiting handsomely from them. While we keep paying more and more, the net profits of many companies continue to grow. Foodwatch wants to take action on this as soon as possible.

Now we suddenly understand why we have to fork out so much for our daily groceries. Because the fact that inflation seems to be easing in every area except food prices is a little strange. Don’t you think? Foodwatch fears that our groceries will become even more expensive in the near future. The reason: the grain deal with Ukraine was recently terminated. An opportunity for major companies to casually pile on even more price increases. Is that necessary when those profits keep getting bigger and bigger?

Hefty net profits

Unilever, Coca-Cola and Danone, among others, recently presented their figures. And what do they show? Most companies are seeing their net profits grow, sometimes even doubling. Admittedly, this does not apply to every company. Some are also giving up a little. But you won’t see any company making a loss. Those hefty net profits also apply to Jumbo and Albert Heijn. The CEO of Ahold Delhaize—the parent company of Albert Heijn—has already warned us that their prices will rise anyway, because supermarket employees’ salaries are going up. We agree that those salaries should increase. But does that also have to be passed on to our groceries when profits are already so enormous?

Shareholders

Foodwatch states in its communications that it of course understands that costs have also increased for companies in recent times. After all, that applies to all of us. But it is rather striking that companies’ net profits are growing while everyone is having to watch their pennies these days. Why are shareholders being paid more and more while more than half of all Dutch households are just managing to get by? Fortunately, politicians and the FNV trade union federation also find the situation highly suspicious. Hopefully, that will lead to action.

Investigation

Research is needed to bring the real figures to light once and for all. Foodwatch is asking: are these profits realistic, or is this greedflation? Several studies point toward the latter. In other words, that ‘companies’ prices are rising faster than their costs justify’, as stated in Foodwatch’s report. But so much remains unclear. For consumers too. Foodwatch is going to investigate and hopes to answer all kinds of questions. For example, who determines the price of products in the supermarket and which costs are included. But also: should we be looking at major companies such as Unilever, or at the supermarkets themselves? We’ll wait and see, and hope something changes soon. Because it is crystal clear that a lot is seriously wrong.

Read also:

• These 10 countries have been hit hardest by food inflation
• Want to shop cheaply? Head to Belgium
• Everyone to Aldi and Lidl—the inflation hits hard

Source: Foodwatch