The rise in grocery prices in Spain since the beginning of the year – caused by price increases in logistics, transport and fuel – is currently hitting private labels hardest.
While the manufacturers and trademarks were already passing on increases in their final selling price, the private labels or distributors reacted more slowly. However, this was reversed in April. And while the former slowed down their increases, the latter maintained their rate of increase.
An analysis of the development of both types of brands in basic products, since the beginning of the year, shows that:
- The overall calculation of price increases from January to mid-April is 10% for factory brands, compared to 18% for private labels.
- The commercial works during the first three months of the year led the way in terms of price increases. The increases started in January and peaked in March. Oil and flour rose the most in price.
Private label products, which always have a more irregular price development, showed a slower development, with clear peaks at product level and large differences between the different months. Oil was again the driving force behind the price increases.
Since the beginning of this month, however, the trend has been reversed. The manufacturer brands have levelled off and readjusted their price increases, while the distributors have maintained their price increases. The reason is clear: the commercial brands want to regain ground after losing sales to the cheaper private brands, which now have to renew their stocks at higher costs.