Prices doubled for environmental impact: madness of a German chain
For one week Penny increases some food products by up to 94%. The reason? They pollute...
The brand has also been present in Italy since 1994 and today has over 400 discount stores with an "offensive" format, thanks to which it wants to attack the market, with innovation and determination, in order to obtain positive results for itself and for customers ". So it is reported on their site. Let's hope that the "offensive" does not include bizarre initiatives such as the one carried out in Germany in Italy.
Anxiety about climate change must have gone to the head of some managers of large German retailers. Overnight, customers of the Penny discount chain, which is very popular in Germany, saw the prices of some products soar up to 94%. The "experiment" underway in the 2,150 German branches will last just one week (31 July - 5 August) and will involve nine of the more than 3,000 brands on Penny's shelves.
In terms of communication, the operation is totally calibrated in favor of the consumer: the price is increased on the basis of the environmental damage estimated at the time of production. Notoriously, the ecological sensitivity of the Germans has always been particularly pronounced, therefore Penny has greatly emphasized the sustainable aspect of his action.
Among the products that have almost doubled in price are highly protein foods such as Dutch Emmenthal (from 2.49 euros to 4.84 euros) and frankfurters (from 3.19 to 6.01 euros). The price increase for other goods is more reduced: mozzarella goes from 0.89 to 1.55 euros (+74%), fruit yoghurt from 1.19 euros to 1.56 euros (+31%). The treatment (could it be a coincidence?) reserved for vegan cutlets is different, with a much less significant increase (+5%).
"We realize that many of our customers suffer when they arrive at the checkout due to the consistently high prices of food products. However, we face the uncomfortable reality that the costs of the supply chain do not reflect those of the environmental and social impact", explained the director Penny General Stefan Görgens .
The decision was taken following a consultation carried out between the top management of the distribution group and a team of researchers from the Technical University of Nuremberg and the University of Greifswald, who have elaborated an estimate of the economic effects of the production of the nine foods on the soil , climate, water and health. All of this translates into "costs that it is not clear if, when, how, where and by whom they will be compensated," company sources said. "We're lying to ourselves if we pretend that today's food production has no hidden environmental costs," said Amelie Michalke , a researcher at the University of Greifswald.
Probably to dispel any suspicions about possible speculations, Penny will donate 100% of the surcharge to the Zukunftsbauer project, which - in collaboration with the Berchtesgadener Land dairy - promotes sustainable agriculture, adding a further 50 thousand euros to the amount thus obtained.
Penny is the food discounter of the Rewe group, one of the leading commercial groups on the German and European market in the large-scale distribution sector. The brand has also been present in Italy since 1994 and today has over 400 discount stores with an " offensive" format, thanks to which it wants to attack the market, with innovation and determination, in order to obtain positive results for itself and for customers ". So it is reported on their site. Let's hope that the "offensive" does not include bizarre initiatives such as the one carried out in Germany in Italy.
EFA News - European Food Agency