:. Food Industry News


Major Croat Retailers Cut Prices After PM's Attack

Source: Reuters
05/09/2008

Zagreb, Sept 4 - Shops in Croatia, led by the country's leading retail chain, are slashing prices after the government called on the private sector to help reduce the pain of inflation, now at a 14-year high.

Daily News Alerts

Food retailer Konzum said in a statement faxed to Reuters on Thursday it had cut prices "wishing to contribute to overall lowering of prices... As the biggest retailer, we are aware of our responsibility for consumers."

Konzum, which controls a quarter of the country's retail sector, cut the prices of 22 staples, like bread, milk, oil, sugar, and diapers by between 12 and 15 percent, prompting competitors to take a similar course.

The move follows scenes from across the Adriatic Sea last week, where pizza chefs in Naples handed out free pizzas in response to a popular outcry in Italy over higher prices.

Although Croats did not stage any protest rallies against this year's spike in food and oil prices, they welcomed the move started by Konzum.

"This is great. Honestly, I can't remember the last time so many products became cheaper. It is always the other way round," said pensioner Ljiljana Maric as she strolled down the aisles of one of Konzum's many shops in the capital.

Inflation jumped to 8.4 percent in July, the highest since Zagreb beat back double-digit inflation in 1994, prompting Prime Minister Ivo Sanader to urge retailers to help out "instead of striving to have profit margins of 100 percent".

The Business.hr financial daily splashed the photo of Konzum's owner, Ivica Todoric, on its front page, with the headline "Only for you, dear Ivo", a reference to Sanader.

Konzum management declined it had been pressured by the government but said it had "taken into account" Sanader's comments.

Agriculture Minister Bozidar Pankretic told Jutarnji List daily the government was holding talks with major food producers to persuade them to slash prices.

But some pundits were concerned that the government was meddling too much in the private sector, a throwback to the socialism that ruled Croatia for half a century until 1990.

"Instead of a free market, we obviously still have a command economy at work," said an editorial in Business hr.



GO   View more articles on this subject


More Alerts from 05/09/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
EBRD Supports Modernisation of Retail Sector in Croatia...
Slovenia's Mercator Forms JV with Croatian Retailer
Croatian, Serbian Firms to Merge Retail Arms
US Shoppers Going Green Despite Struggling Economy
Russian Grocer X5 Plans Higher 2010 Capex
Seventh Continent Owner Cedes Stake in Debt Deal
EBRD Acquires Stake in Belarus Retail Chain, Owner...
UK Xmas Sales to See First Fall Since 1980s - Survey
German Grocers Bolster Own Brands in Shelf Battle
Rewe's Penny Markt Enters Bulgaria

More in Food Industry News
Procter & Gamble Repurchasing Shares, Quiet on...
US Shoppers Going Green Despite Struggling Economy
Wessanen Sells Liberty Richter to World Finer Foods
Cheesecake Factory Sticks to 2010 Forecast
Brenntag Changes 2.5 Bln Euro Loan to Allow IPO
European Commission Refers Greece to ECJ over Unjustified...
JM Smucker's Quarterly Net Income Increases 172%
Ferrero, Hershey Would Likely Break up Cadbury
Indonesia's Astra Agro Revises Up CPO Forecast
Cocoa Supplier Olam to Benefit from Consolidation Among...

Top Headlines
Procter & Gamble Repurchasing Shares, Quiet on...
US Shoppers Going Green Despite Struggling Economy
Wessanen Sells Liberty Richter to World Finer Foods
Cheesecake Factory Sticks to 2010 Forecast
European Commission Refers Greece to ECJ over Unjustified...
JM Smucker's Quarterly Net Income Increases 172%
Cocoa Supplier Olam to Benefit from Consolidation Among...
Avebe and National Starch Food Innovation to Expand...
Auchan Backs Hypermarkets as Rivals Rethink
Ferrero Could Eye Cadbury Gum, Candy Unit
Dole Food Posts Wider Q3 Loss
Fonterra Sells Stake in UK Joint Venture to Arla
Imperial Sugar Company Closes Three-Way Joint Venture...
PepsiCo to Invest $100 Million in Egypt in 2010
Ex-Parmalat Auditors Settle US Investor Lawsuit
Tesco in Broadband Push as Reaches Beyond Groceries
India Sugar Protest Forces Parliament to Shut
Kerry Group Keeps Full Year Earnings Growth Forecast
Nestle Professional to Acquire Vitality Foodservice
Pinnacle Foods Acquires Birds Eye Foods for USD 1.3...
DSM Makes Great Strides in Production Processes for...
Russian Grocer X5 Plans Higher 2010 Capex
Brazil: Laep in Talks to Sell Dairy Plant to Nestle
SunOpta Announces Opening of Natural and Organic Sesame...
Products Comprising, and Uses of, Decarboxylated Phenolic...
Process for the Preparation of Packaged Heat-Preserved...


 


FLEXNEWS 2009 - All rights reserved
ISSN 1950-6228