Food producers are notifying retailers en masse about increasing purchase prices by 5–40% in August–September 2024, Kommersant reports.
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Similar appeals to stores were sent by manufacturers of confectionery products Mars, Ritter Sport, Dymka and Slavyanka, dairy products Wimm-Bill-Dann, Viola, Ekomilk, Health & Nutrition (formerly Danone), Milkom, Piskarevsky Molzavod, bread Karavai, beer drinks Baltika and AB InBev Efes.
Chairman of the Presidium of AKORT (which unites large retail chains) Igor Karavaev said that retailers are currently checking the received appeals for validity. "Some products, such as bakery or chocolate products, have become more expensive this year already more than once ," he explains.
The need to adjust prices is related to objective market factors: rising costs, rising prices for raw materials, logistics, labor, and material and technical resources, says Dmitry Leonov, deputy chairman of the board of the Rusprodsoyuz association (which unites food producers and suppliers).
Another reason for the active increase in prices was the maintenance of a high key rate of the Central Bank, which led to an increase in the cost of borrowed funds. Viola, for example, highlights this factor in its letter to the chains. According to the company, the cost of servicing production lines is also growing, and some packaging film has become 12% more expensive, logistics costs have increased by 16-30%. Baltika reports in its letter that bottles have become 8% more expensive, aluminum cans – by 25%. The company also cites inflation as an argument for increasing selling prices. According to Rosstat, food inflation in Russia in July 2024 increased by 9.67% year-on-year, total inflation – by 9.13% (see also the text on the same page).
Sugar, fruit and berry additives and starters have increased in price by 20%, writes Milkom. Milk, according to the company, has increased in price by 12%. Milkom expects to increase purchase prices for its own assortment by 5-15%.
The most pronounced price dynamics will probably be in the confectionery segment. The manufacturer Ritter Sport warns retailers that the wholesale prices for the Extra Cacao range will increase by 40% year-on-year from September 1. The chocolate market continues to be affected by the sharp rise in cocoa prices, associated with a decrease in its production due to drought in West Africa. Mars intends to increase the cost of Dove and Korkunov chocolate bars by 19% from September 9, and Skittles chewing candies, which do not contain chocolate, will increase in price by 13%.
The Slavyanka association draws attention to the increase in the cost of confectionery fats by up to 50%, dry dairy products by 20%, and flour by 30%. Karavai also points out this in its letter, planning to raise prices for its products by 10%.
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