:. Food Industry News


Inflation Eats Away at French Spending on Food

Source: Reuters
23/09/2008

Paris, Sept 23 - Galloping inflation has eaten away at French spending on food, making shoppers less choosy about brands and fresh produce and more willing to cut back on restaurant visits, according to a survey released on Tuesday.

Daily News Alerts

The survey by CREDOC, a state-backed research body specialising in French living conditions, found that many people retain their traditional attachment to the ideal of convivial eating, good food and a varied diet.

But sharp price hikes that have seen the cost of fruit rise 17.6 percent, milk and cream go up 14.8 percent and poultry prices rise 12.5 percent over the past year, have chipped away at the French attachment to the pleasures of the table.

The survey of 1,004 people conducted in June, found consumers paying closer attention to price, more shopping at hard discount chains and fewer choosing supermarkets or the specialised food shops that feature on most French high streets.

The survey came on the same day that France's biggest consumer rights group reported that food manufacturers were in effect raising prices by quietly cutting the size of some items or the amount in some packets while not changing the price.

It found almost all people (97 percent) believed eating was a good opportunity to spend time with others and a source of pleasure but there was strong pressure to cut spending on food.

Some 18 percent of people were cutting back on non-essential items, 28 percent were choosing lower range products and 17 percent were consuming less, while there was a sharp jump in the number of those comparing prices between shops more than normal.

"In 2008 and 2009, there could be a reduction in the volume of food spending," the survey found.

The effects have not been confined to shopping alone. French restaurant and cafe owners have been fretting about demand for months and the survey found that 21 percent of people would go to restaurants more often if their budgets were not so tight.

"We are very worried," Daniele Deleval, vice-president of the UMIH hotels and restaurants association, told the daily Le Figaro on Tuesday. "Since the beginning of the year, business is down 20 percent on average and we see no sign of improvement."

According to figures from credit insurer Euler Hermes published this month, bankruptcies of restaurants, cafes and hotels rose 19.7 percent in France in the first half of 2008.

With average consumer spending power in France down 0.4 percent in the second quarter of the year, according to Economy Ministry figures last week, any reversal of the trend is likely to be some way off. 



GO   View more articles on this subject

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
France: Leclerc Says Crisis to Hit Retail Sector
Colruyt Acquires 100% of the French SODEGER Group
French Flo Restaurants Say Consumption Collapsed
Organic To Go Expands Beyond West Coast into Washington...
French Minister Goes to Germany to Sell Shop Law
Walmark Opens Its First Branch in Western Europe
Carrefour CEO: Favors Reform of French Retail Sector...
French Supermarket Workers Strike over Wages
France: E. Leclerc Removes 3 Food Items from Supermarkets...
France: Retail Sector Annual Report 2007

More in Food Industry News
US Coffee Roasters Try Growing the Beans They Sell
Mexico's Comerci to Offer Debt Restructuring Plan
Brazil, Thailand Challenge U.S. Import Measures
Russia's Wimm-Bill-Dann in Talks over $180 Mln Bank...
EU-Australia Wine Trade Agreement Signed
Ireland: Carbery Launches Legal Action Against Carbon...
Dow Introduces New Plant-based Technology Enabling...
China to Open Anti-trust Probe into Coca-Cola's Bid...
Panrico Among Finalists for SOS Biscuits Arm
China Raises Death Estimate from Tainted Milk to Six

Top Headlines
Brazil, Thailand Challenge U.S. Import Measures
Russia's Wimm-Bill-Dann in Talks over $180 Mln Bank...
EU-Australia Wine Trade Agreement Signed
Vietnam Aims to Avoid Coffee Expansion in 2009
Carrefour Plans More French "Carrefour" Brand...
Ireland: Carbery Launches Legal Action Against Carbon...
Dow Introduces New Plant-based Technology Enabling...
China to Open Anti-trust Probe into Coca-Cola's Bid...
Panrico Among Finalists for SOS Biscuits Arm
China Raises Death Estimate from Tainted Milk to Six
Mondavi-inspired Wine Center Files for Bankruptcy
Kohlberg Kravis Roberts to Invest $100 Million in Chinese...
Unilever Reshapes its Global Research & Development
SIA Unit to Buy Singapore Food for S$478 Million
UK: Real Good Food Warns on Profit Again
Tesco Preparing for Tougher Times Ahead
Brown-Forman to Divest Italian Wines
DeMet's Candy Company Acquires the Treasures and Stixx...
Canada Greens File Complaint on Nestle Water Ads
Saputo Completes the Acquisition of the Activities...
Solae Announces Global Price Increase for Soy Ingredients
Colruyt Issues Interim Financial Report; Revenues Rise...
UK: Bidders Circle Troubled Woolworths
Ardo Confirms Take-Over of Austria Frost
Carrefour Still Planning Indian Joint Ventures
Improved Infant Formula, Aroma Composition for Use...
Co-Precipitated Carrageenan/Xanthan Gum Compositions...


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228