Link to main version

57

Manolova: Retail chains pressure producers and drive up prices

The CPC chairwoman reported markups of up to 142% on dairy products and more than 200% on vegetables. Documents from inspections at the five largest chains have been sent to the Commission for Protection of Competition

Снимка: БГНЕС

Retail chains are exerting systematic pressure on Bulgarian producers, while markups and final prices for consumers continue to rise. This was stated by Maya Manolova, chairwoman of the Commission for Consumer Protection, on the programme „Denят ON AIR“.

Inspections by the CPC at the five largest retail chains have established violations, and the documents collected have already been sent to the Commission for Protection of Competition. Manolova said that such behaviour by large retailers was not found in the other countries of the European Union.

Supply prices are falling, but goods are becoming more expensive

According to the CPC chairwoman, invoices for milk, cheese and yellow cheese show a 20% decrease in supply prices between October 2022 and October 2026. Despite this, final prices in shops have increased.

„In reality, supply prices are falling, markups are increasing, and the final price for consumers is also going up,“ Manolova said.

She also said that at the beginning of every year, producers were pressured to reduce their prices by an additional 3–4%. The data she presented indicated markups of between 30% and 130% on basic food products, more than 200% on vegetables and up to 142% on dairy products.

As an example, Manolova cited German Gouda with a 20% markup and Bulgarian yellow cheese with a 120% markup. According to her, markups on dairy products in Germany range between 15% and 25%.

The sanction against „Kaufland“

The issue of relations between retail chains and producers escalated after the Commission for Protection of Competition decided to impose sanctions totalling €75.65 million on „Kaufland Bulgaria“ for three unfair trading practices.

The company rejected the accusations and said that under these circumstances it might reconsider planned investments of €200 million over the next three years. The sanction is subject to judicial review.

Manolova described the CPC’s decision as seriously substantiated and said she had sent reports to the National Revenue Agency and the Bulgarian Food Safety Agency.

The CPC chairwoman also commented on the problems facing „Toplofikatsia Sofia“. According to her, there are hundreds of complaints, including from consumers who have been left without hot water for more than three months. Manolova said that if compensation for the days without heating was not included in the bills, she was ready to file a class action.