(Online newspaper): The price of Freia‘s 200 gram milk chocolate has set a new record at Kiwi, Rema 1000 and Extra.
Never before have they sold the chocolate more expensive than now: 59.90 costs it for a plate.
The price increase for this has been extreme over the past year. Now it costs almost 30 percent more than in August last year.
The reason the chains provide to increase the price does not hold water, says Anders Nordstad. He is an economist and is followed by over a hundred thousand in social media.
– They turn up the price because they can. This is a strong brand and they of course try to sell the chocolate as expensive as they can, says Nordstad.
Owes the cocoa prices
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To Nettavisen has the chains claimed they have increased their purchase prices And with these explanations:
“There has been a price increase in several input factors for chocolate, in particular the commodity price of cocoa has risen sharply in recent years,” said the purchasing director of Rema 1000 Line Aarnes.
Extra justified the increase like this:
– The price increase is mainly due to increased prices from our suppliers, which in turn is due to increased commodity prices such as cocoa, replied communications director, Harald Kristiansen.
And Kiwi replied this:
“The price increase is due to a new price increase from the supplier, and according to them, the commodity price of cocoa continues to increase,” said communications adviser Katrine Lunde.
Lower cocoa prices
These are the explanations Anders Nordstad believes do not hang on.
– Admittedly, the cocoa prize has gone up some in recent years. But in the past year it has gone down, says Nordstad.
One kilo of cocoa in the commodity market cost in June this year NOK 84.50 per kilo. This is five percent lower than June last year.
He also points out that cocoa is just a smaller part of the raw materials in a chocolate.
One two hundred grams of milk chocolate has 30 percent cocoa in it. There will be 60 grams of cocoa, which in the world market costs around five kroner. So the price of a milk chocolate plate in the store is 10 cents away from costing sixty kroner.
Photo: Erik Molland (Nettavisen)
Most sugar in the chocolate
But what is most of the chocolate is sugar.
– Here commodity prices have fallen even stronger, so there is really no argument for raising prices, says Nordstad.
The commodity price of sugar has fallen by 18 per cent from June last year to this year.
– a strategy to confuse
Nordstad believes there are several reasons why the chains are turning up the price.
– This is a popular lure. This means that the stores alternate between high and low prices on the chocolate so that they get a shock effect when they later have it on offer, says Nordstad.
This change helps to create a confusion that is positive for the stores, Nordstad believes.
– Before, people knew what the goods used to cost in the store. Now it’s almost impossible. And if you add bonus schemes and other discounts, this appears as a strategy to confuse and thus ensure that customers do not know what the right price is, says Nordstad.
Strike back
Extra strikes back against the criticism from Nordstad.
– Unlike Nordstad, we have no prerequisites to believe what prices our suppliers pay for their raw materials, says communications director Harald Kristiansen.
He claims they have received increased prices from Freia, and that Extra has not increased its margins.
– Then Nordstad, Gjerrigknarken and suppliers have to spend the summer running the sting game, but we actually have to deal with the prices we have received, says Kristiansen.
He also thinks the claim that the chains are confusing are completely wrong.
โ Nordstad has a background from trade in grain and soyand I neither believe nor hope he had it as a strategy and confuse his customers. Why should Coop confuse the customers who own us and with whom we share the profits? Kristiansen asks.
No explanation from Freia owner
Purchasing Director of Rema 1000, Line Aarnes has this short comment:
– Our biggest cost is the cost of goods, so as our purchase prices increase, unfortunately, the prices in the shelf also increase, she says.
Kiwi says they relate to prices and information they receive from their supplier Freia owner Mondelez.
Nettavisen has confronted Modelez with the chains’ claims that purchasing prices have increased at the same time as commodity prices have decreased.
The Freia owner gives this short answer in an email:
– As mentioned, we cannot comment on our awards against the trade. Regarding cocoa prices, I can refer you to publicly available data on the cocoa barrel.
But these figures thus show falling commodity prices.