:. 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
Casino Q2 Sales Drop 1.9 pct as France Weak
French Restaurants Prepare for VAT Cut
French Farmers Block Retail Warehouses in Price Row
Jamba, Inc. Announces Refranchising Initiative Involving...
France to Cut VAT on Cafes, Restaurants in July
US Shoppers Hit Meat Counters as Recession Bites
French Flo Restaurants to Cut Staff as Crisis Bites
UK: HRI Foodservice Annual Report 2009
French Meat Prices Unfairly High - Consumer Group
Retailers, Restaurant IPOs in for Long Wait

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