– The cost explosion that starts already during the pandemic can only be a foretaste of what may come next year, according to director Petter Haas Brubrakk in NHO Mat og Drikke. news registers, among other things, that the price of Pepsi Max is up as much as 33 percent. The warning came just a week before the big price adjustment today. The grocery industry is also doing this on 1 February, and this year it should lead to an increase in food prices of 4.5 per cent. The largest monthly change since July 1981. This week, news has mapped the price changes for a number of groceries at the low-price chains Extra, Kiwi and Rema 1000. Down in the case, there are tables that show the price changes. The final sum on the cash slips would continue to rise. Photo: Mathias Moene Rød / news In percentage terms, the price increase for several basic goods is double-digit from one day to another. Outside an Extra on the lower Grünerløkka, three skaters have found shelter under the roof for the torrential rain in the capital. Only one of them has seen Friday’s price jump. – I had heard that there would be an increase in price, but I probably did not think about it when we shopped. One must have food anyway, says Vemund Danielsen (25). Even though the other two players have not seen the price change, they are keen to be aware of the final amount on the checkout. – If something goes up by a third, it is very much. If clothing is on 30 percent offer, it does something with the desire to buy, says Amanda (25). Amanda, Mats and Vemund on a shopping trip on 1 July. – One must have food anyway, says Vemund. Photo: Mathias Moene Rød / news Comment from Kiwi Communications Manager Kristine Aakvaag Arvin: KIWI is the price squeezer in the market and we work every single day to make the food as cheap as possible. As several suppliers have already announced in the media, they have had a number of cost increases in recent months. Unfortunately, this has resulted in large increases in input prices to us. In fact, we have never seen such large price increases from suppliers as we received today. We promise that we will do what we can to keep the increase as small as possible, and we expect our suppliers to do the same. The price increase we are now seeing for groceries is not unique to Norway. The price increase in our neighboring countries has been even greater. We promise to continue to fight for low prices! In addition, all our 1.9 million KIWI PLUS customers receive a 15 percent bonus on fresh fish, fruits and vegetables and a 1 percent bonus on all other groceries. – We promise that we do what we can to make the increase as small as possible, and we expect our suppliers to do the same, answers Kiwi’s communications manager, Kristine Aakvaag Arvin. The grocery industry is under strong pressure. Record high prices for electricity, fertilizer and fuel contributed to a record-breaking agricultural settlement where NOK 1.5 billion is taken out in increased prices. This is reflected, among other things, in the price of Norwegian grain, dairy, meat and vegetable products. Milk is one of the basic products that we now have to go out with more for. Photo: Mathias Moene Rød / news Imported goods also have and will become more expensive for the same reason, says Dag Fagerlid. He has a long career as an advisor in the industry. – The situation is a perfect storm, says the grocery expert. In this storm, a widely used raw material such as halibut is central. In May, the international award reached a historic high. Both Europe and North America are affected by the drought, while the war in Ukraine has led to more than 20 million tonnes of halibut being locked up in Ukrainian ports. Grocery expert Erik Fagerlid believes that price increases in these times will be able to increase the differences in the country. Photo: Line Tomter / news – Russia and Ukraine say the importance for world production has proven to be very great, says Fagerlid about the countries that produce a quarter of the halibut in the world. Years in countries with large coffee production mean that the prices of national drinks are higher than in a long time. Like most other groceries, the increased transport costs also play a role in the price. The pandemic reduced transport capacity, and this has not yet reached its previous level. The poor relations between the West and the energy superpower Russia further contributed to the already high oil and gas prices, and again expensive transport of goods. – Costs related to food packaging drive up prices in these times, says Fagerlid, and refers to the petroleum product plastic. During the pandemic, the three grocery chains had a strong sales week after a couple of years of zero growth. Nevertheless, he believes that the industry will shift a significant part of the burden onto us customers. Rema says it is inevitable. – The absolute largest part of our costs is the cost of goods, so when suppliers increase the price, it will also affect what the customer pays, answers spokesperson in Rema 1000, Hege Rognlien. Answer from REMA 1000 Press spokesperson Hege Rognlien: REMA 1000’s goal is to sell groceries cheapest in Norway. We have followed up suppliers to ensure that reported price increases are real increases such as increased raw material prices or energy prices as a result of the war in Europe. But the absolute largest part of our costs is the cost of goods, so when suppliers increase the price to us, it will also affect what the customer pays. That said, we continue with our efficient business model, to keep prices as low as possible. – It should not come as a surprise that a store runs to make as much money as possible, but with the price pressure they experience, they will have a very strong focus on what prices customers will tolerate, says Fagerlid. – They live on high market shares and large volumes, and therefore do not tolerate being significantly more expensive than their competitors over time. It is a twisted strategic situation for them, he adds. Response from Coop Communications Manager Harald Kristiansen: Customers can be assured that Coop, which is owned by the customers, will not increase prices more than absolutely necessary. As is well known, we are in an extraordinary situation with very turbulent markets and major changes in the price of many raw materials and energy, which also has consequences for transport and other operations with us. The suppliers have announced large price increases to us in several rounds, and there will be a visible increase in the prices of most goods. Future price developments are very unpredictable. In a situation where the prices of a number of products and services are rising, Coop, on behalf of our 2 million co-owners, will take responsibility for keeping the prices of groceries down. We work systematically to challenge price increases from suppliers for which we find no justification. With today’s price increase, we will traditionally enter a period where prices will fluctuate a lot, and price tests like this are a snapshot. Extra should be at least as cheap as the competition. Therefore, we immediately adjust the prices if we see that the competitors have a lower price. Coop’s margins are significantly lower than at most suppliers. We therefore hope that the Minister of Agriculture and Food sends the same call to suppliers as to us to take responsibility. The documented price differences from suppliers in favor of the largest player, contribute to poorer competition and do not serve consumers. Fagerlid also believes that the situation may become difficult for those who are already struggling with other increased living costs. – The price increase in groceries has traditionally been 3 to 4 percent a year, but this year we are certainly talking in double digits, he says. Coop’s head of communications, Harald Kristiansen, says that future price developments are very unsustainable. According to a survey conducted by YouGov in June, 1.8 million Norwegians are worried that food prices will increase so much that they will have to change their eating habits. For them, economics commentator at news, Cecilie Langum Becker, has some tips that can ease the economy. news’s financial commentator, Cecilie Langum Becker, says one can take action to meet the rising grocery prices. Photo: Ole Kaland / news Check the app Food offers, which has an overview of all offers at all chains. Most stores also have their own refrigerators with soon-to-be-discontinued items. It’s always my first stop when I shop. If the store has a fresh food counter, Monday morning is a good time for the very best selection. One must never think that it is embarrassing, on the contrary – one should be proud that one is good at finding food on offer! Another good tip is to drop finished goods and mixes. What do you do with an expensive pancake mix when you can use flour, eggs and milk? Finished pizza bases can cost ten times as much in the store than making them at home. The same goes for cakes and buns. It’s not particularly much faster either.
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– No improvement in sight – news Norway – Overview of news from different parts of the country
