Lionel Souque, head of Rewe, has criticized major brand manufacturers for failing to pass on lower raw material costs to consumers in a timely manner. Taking chocolate as a prime example, Souque noted that while cocoa prices had dramatically risen up until last year, leading to massive price hikes, raw material costs have been falling for several months now. Despite this, major brands, particularly Lindt and Mondelēz, have not lowered their retail prices.
He pointed to a specific instance involving “Alpine Milk Chocolate” from Milka. Originally, the recommended retail price for a 100-gram bar was €1.49. However, the product size was subsequently reduced to 90 grams, and at the same time, the purchase cost rose. Souque argued that under these conditions, selling the product for less than €1.99 was nearly impossible to justify, calling the situation absurd. He contrasted this practice with Rewe, which lowered the price of its 100-gram private label chocolate, first to €0.89, and later to €0.79.
Regarding the broader discussion about potential VAT reductions on staple foods, Souque explained that such a tax reduction-as happened during the COVID-19 pandemic-would generally be reflected in the average prices across the entire product assortment. However, he cautioned that this adjustment could not be guaranteed for every single item, stating that the final outcome would likely be a mix of localized price changes. He emphasized that retailers must consider the full range of goods, explaining that whether a price drops from €1.09 to €0.99 depends on the overall cost basis of the product.
