Lorraine Williamson
Mercadona has reopened the debate over food prices in Spain after chairman Juan Roig used the presentation of the supermarket group’s 2025 results to call for zero VAT on food in both Spain and Portugal. At the same time, he warned that if raw material costs rise because of the conflict involving Iran, supermarket prices could also go up, even though suppliers have not so far passed on increases. Mercadona’s own results statement confirmed the company reached €41.858 billion in sales in 2025 and €1.729 billion in net profit, giving Roig’s comments added weight on a day when the retailer was already under close attention.
Speaking on Tuesday, Roig said Mercadona would be delighted to see both governments move to 0% VAT on food. He also made clear that, while suppliers have not raised prices so far, any increase in raw-material costs would eventually feed through to supermarket shelves. The message was cautious rather than alarmist, but it underlined how quickly international conflict can feed into everyday household spending.
A fresh warning on food prices
Roig said that, for now, suppliers have not raised prices and Mercadona has therefore not done so either. Still, he described the future as uncertain, pointing to the way recent years have been shaped by one disruptive shock after another, from the pandemic to the war in Ukraine and now the conflict involving Iran. His message was not that price rises are already here, but that supermarkets cannot ignore the risks building in global supply chains.
That matters because food prices remain one of the most politically sensitive parts of household spending in Spain. Even when headline inflation eases, consumers tend to judge the economy by what they see in supermarkets. A warning from Mercadona, which reaches a vast number of households across Spain, is therefore likely to resonate far beyond the retail sector.
Why Mercadona wants zero VAT on food
The call for zero VAT on food revives a debate that has returned repeatedly during Spain’s cost-of-living squeeze. Temporary VAT reductions on some basic foods were introduced during the inflation crisis, but Roig’s comments go further by suggesting governments should eliminate the tax rather than rely on partial relief or short-term measures.
For shoppers, the appeal is obvious. Zero VAT would, in theory, reduce prices directly at the till on qualifying products. For politicians, however, the question is more complicated because VAT cuts reduce tax revenue and do not always guarantee the same lasting benefit once broader market costs start moving again. That tension has shaped much of Spain’s food-price debate over the past two years.
Results day gives the comments extra weight
Roig’s intervention came as Mercadona presented its 2025 results, giving the remarks more significance than a passing opinion. Results presentations are moments when major companies set out not only their numbers but their reading of the economy, consumer behaviour, and the pressures they expect in the months ahead. In that sense, his comments were also a signal to markets and policymakers that food-price stability cannot be taken for granted.
For readers in Spain, that makes this about more than one supermarket. Mercadona often functions as a barometer of wider consumer sentiment. When the company talks publicly about costs, pricing or tax, it tends to feed straight into the national conversation about inflation and living standards.
The Iran conflict is now entering everyday economics
One reason the remarks are likely to gain attention is that they connect a distant geopolitical crisis to everyday household costs. Consumers may hear about shipping risk, raw materials, or regional instability as abstract issues. Yet supermarket chiefs know those pressures can move quickly into transport, packaging, energy, ingredients, and eventually shelf prices.
Roig did not say a rise is happening now. He said that if raw materials go up, Mercadona’s prices will follow. That is a cautious but important distinction. It avoids unnecessary alarm while still underlining how exposed food supply chains remain to external shocks.
A familiar Spanish debate returns
Spain has already lived through the politics of expensive groceries. Olive oil, dairy, fresh produce, and staple foods all became flashpoints during the inflation surge, while supermarkets were regularly drawn into disputes over margins, supplier power, and whether tax cuts were reaching consumers in full. Roig’s remarks show that the issue has not disappeared; it has simply entered a new phase where external conflict could again become a trigger.
That is why the zero-VAT idea may find support among consumers even if governments are less enthusiastic. It is simple, visible, and easy to communicate. But it also sits in a wider argument about whether the best response to rising prices is tax relief, direct support for vulnerable households, or broader attempts to protect supply chains and energy costs.
What shoppers should take from this
For now, there is no immediate warning of a new supermarket price surge. Mercadona says suppliers have not raised prices, and the company has not either. Still, Roig’s message was a reminder that the calm could be fragile if geopolitical tension begins to feed into production and transport costs.
That makes this a story worth watching. A call for zero VAT on food may sound like a political wish-list item, but it lands at a moment when Spanish households remain highly sensitive to any sign that the cost of eating well could rise again. If the pressure on raw materials grows, the debate Roig reopened on Tuesday may move quickly from supermarket conference rooms to government desks.