Greek food industry and retailers support the Household Basket

Wednesday, November 30, 2022

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The measure of the Household Basket is finding more and more allies, which hopefully is on its way to completing its second week of operation. In the context of the reactions we expected from the Greek food industry, they are positive, if we take into account the positions of the Association of Greek Food Industries (SEVT) to FOODReporter: "SEVT, in the context of its institutional role, encourages its members to intensify their actions, expanding their participation in the Household Basket. Sharing the criticality of the situation, the Greek food and beverage industry will continue to support the Greek consumer, in order for the products it produces are its conscious choice." At the same time, SEVT seems that it is coming to function as a guardian of the adequacy of products.

In any case, at the level of offers and promotional actions in Greek retail trade concerning food, the percentage of promotional intensity for branded fast-moving consumer goods (FMCG) in the category "Food & Beverage" amounted to 42.3%, according to current data from NielsenIQ, showing a steady upward trend. "The Greek food and beverage industry supports the Greek consumer: It consistently offers branded, safe, high-quality products to consumers, with ongoing promotional activities, while ensuring the adequacy of nutrition products", added SEVT, in its statement.

The entry of efood into the Household Basket measure in the second week of operation

Besides, for the Household Basket measure, the General Secretariat of Trade and Consumer Protection definitely withdrew the turnover condition of 90 million euros per year for the chains and services of retail trade included in the Basket, which brought the entry of efood into the measure, with its own corresponding Basket.

Sources from the General Secretariat of Trade and Consumer Protection explained to FOODReporter how efood’s entry into the Household Basket came about: "The institution of the Basket first started with all those chains that have a turnover of more than 90 million euros and they were obliged to prepare the Household Basket. The efood came on its own voluntarily in the second week. Then all the necessary actions were taken for its inclusion, with the footnote that any retailer who voluntarily joins the measure cannot leave before the completion of the operation of the measure, therefore efood will remain on the e-katanalotis.gov.gr page for as long as the measure is in force".

There was no further response to the FOOD Reporter’s question whether the entry of efood into the Household Basket opens the door for the entry of other retail stores in the measure. However, FOODReporter contacted with smaller chains in the Greek organized retail trade and found that their strategy is to emphasize their own offers and promotions, which according to the relative topicality, they symbolically name as "their Basket".

The efood itself answered about its inclusion in the Household Basket as follows: "Following the initiative of the Ministry of Development and Investments and after consultation for the support of households, efood proceeded with its integration into the Household Basket program, with the efood market service. In particular, we have created a special category in the efood market, the "Household Basket", in which consumers can find the specific products and which will be renewed every week, according to the demand for the products".

The increasing participation of branded products in the Household Basket

“Our main focus is to provide competitive prices on all our products, regardless of the current situation and for this reason, we always provide our consumers with the opportunity to choose discounted products. Practically, we have reduced prices on more than 90 branded products in an effort to help ease the impact of financial pressure on households,” efood management added in its statement. "Furthermore, the fact that the efood market operates both during the hours (until 00:30, daily) and on the days (Sundays and public holidays) when the supermarkets are closed, enables consumers to buy products, with fixed prices, without possible financial burden and with delivery at their place within just twenty minutes of the order", marked in efood’s statement.

Indeed, the list for the Household Basket prepared by efood and served through the efood market services includes only branded products and no private label products, since efood does not market them, in the absence of relevant agreements with terrestrial retailers. Given the different availability for ordering and receiving products, efood’s list acquires an objective comparative advantage. The e-fresh.gr list, which is in the Household Basket from the first week based on annual turnover, has the other list, which consists of 100% branded products.

When asked by FOODReporter if efood’s strategic decision to enter the Household Basket measure was influenced by the existence of another chain that sells food online, the company did not comment.

What is worth noting about the efood market list, according to efood’s specific positioning, is that it "includes more than the products that are part of the Household Basket initiative" and efood’s intention is to further increase their number, accordingly on the basic needs of consumers.

Source: Food Reporter #0836/2022-11-14