Despite the fact that the measure that came into force on March 1 had provoked the reaction of the industries, which argued that it was a pure intervention in the free market and that it would not bring a reduction in prices, in the end consumers buy the baby food cheaper 15 %-17% on average compared to the previous period.
According to “ET” research, a well-known brand of infant milk (0-6 months), an 800 gram package, which was sold on the shelves until February 29 at 26.34 euros, now costs 19% cheaper, at 21 .34 euros. Accordingly, other milk for infants of a large multinational fell from 26.98 euros, after the ceiling, to 24.90 euros. At the same time, the price of second baby milk (6-12 months) from 21.73 euros, which was until the end of February, decreased to 18.8 euros, i.e. by 13.5%. These reductions are permanent, as baby foods are prohibited from being subject to offers.
It is recalled that the intervention in this particular category of products came after an investigation by the Competition Commission, which showed that baby milk is sold up to 213% more expensive than in other European Union countries. However, after the application of the ceiling on the profit margin, it seems that the prices in our country move at almost the same levels as other countries and in some cases are even lower.
Fees
From a survey conducted by “ET” by checking prices from online supermarkets in Greece, Spain, Italy, Germany and the United Kingdom, it turns out that the … ranking from the most expensive to the cheapest country changes, depending on the company.
In detail, infant formula from a large multinational company is sold in both Italy and Spain at €20.3, in Greece at €21.34, in the UK at €23.42 (£20.14) and in Germany at €26 , 26 euros.
In other powdered milk for infants from 0-6 months, our country shows the second highest price (24.9 euros) after Italy, where it costs 25.13 euros. They are followed by Spain with 23.8 euros, England with 20.93 euros and, finally, Germany with 19.17 euros. This means that the “gap” between Greece and Germany is 30%.
On the contrary, Greece shows the second lowest price among the five countries for another well-known brand of milk for the second infant age (6-12 months). The milk in question is available at 17.9 euros in Italy, 18.8 euros in Greece, 19.17 euros in Germany, 20.8 euros in Spain and 23.73 euros in Great Britain. In other words, this milk is sold on Greek shelves 26.2% cheaper than in the more expensive country.
Appeal to the Supreme Court from the industries
The Association of Baby Food and Special Nutrition Companies of Greece appealed to the Council of State, in order to rule on the constitutionality of the measure concerning the ceiling on the profit margin for baby milk.
As the companies represented by the Association argue, the ceiling violates free competition and business and economic freedom, and they add that the ceiling prices are arbitrary and lower than the cost of production and distribution.
It is recalled that the measure provides that the gross profit margin cannot be greater than the operating cost of the business in this category of products based on the financial statements of the immediately preceding management period plus 7% of net sales, minus discounts, credits or other benefits.
Infant Milk: THE PRICE COMPARISON
| COUNTRY | PRICE OF 1ST INFANT MILK (0-6 MONTHS) | PRICE OF 2ND INFANT’S MILK (0-6 MONTHS) | PRICE OF 3rd INFANT MILK (6-12 MONTHS) |
| HELLAS | 21,34 | 24,9 | 18,8 |
| SPAIN | 20,3 | 23,8 | 20,8 |
| ITALY | 20,3 | 25,13 | 17,9 |
| UNITED KINGDOM | 23,42 | 20,93 | 23,73 |
| GERMANY | 26,26 | 19,17 | 19,17 |
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