Big food. How much do pricing policies vary from one country to another and why do the same products in Italy also cost twice as much as in neighboring countries? The unstoppable phenomena of parallel trade and imports, in offering consumers the real savings, reveal abysmal asymmetries.
Commerce and parallel import, how do they work
Parallel importers are those who purchase IDM (Industria di Marca) products in non-EU countries, where costs are significantly lower. A practice as old as the international reputation of major brands, in the food sector as in various others (especially in those with high added value, eg fashion and perfumes). Purchases are made in countries such as the former Yugoslavia (Serbia, Bosnia, FYROM), Moldova, Turkey, Egypt and Lebanon, but also in Russia.
Il parallel trade it follows the same logic but does not include customs operations since the trading operations take place in the internal market of the European Union. In this case the 'top brands'they are often bought in the Baltic republics (eg Lithuania), rather than in Germany or Denmark, Bulgaria and Romania, Czech and Slovak republics, Greece.
Cash is king. The effectiveness of import and parallel trade operations is closely linked to fair trade, which is based on direct relationships and instant payments. Trust and savings are built with facts, paid in advance (20% upon order, 80% upon withdrawal) and sold with payment on sight. In a logic diametrically opposed to unfair commercial practices that only now Europe has finally decided to ban, after decades of suffering in the agri-food production chain.
Import and parallel trade, the advantages for large-scale distribution and consumers
Thanks to parallel trade, large-scale distribution (GDO) in Italy can achieve sensational savings. From a minimum of 20-25% on brands like Milka and Nutella, 30% or more on Coca-Cola, over 50% on Ferrero Rocher 'Made in South Africa ', up to 70-75% and more on Mon Cheri, Pocket Coffee and various candies.
The distributor in Italy saves at least 4-5.000 euros per 'platform' (on Kinder bars, for example. A platform, or pallet, houses from 7 to 15 sales units), up to 300 euros on each truck (in the case of Tic- Tac 'zrobione w Polsce', for example. A truck 'full trucks', so-called pivoting, houses 33 platforms).
For the consumer, products that come from parallel trade can cost up to 50% less, without having to compromise on quality or freshness. (1) Parallel trade therefore represents an advantage for everyone, especially for the final consumer who insists on buying this type of product in times of crisis like the current one.
The 'social pact' between distribution and consumers is achieved by guaranteeing significant savings and the effective compliance of the products with expectations. The identity between products distributed through parallel trade or import and those directly placed by Big food on the national market it is in fact verified by comparison of labels, physical and organoleptic examination, laboratory analysis. (3)
Value chain, the role of ConsumActors
Parallel trade it helps us to understand how pricing policy is unreasonably inflated in Italy compared to other European countries. This phenomenon can be attributed, at least in some cases, to the inefficiency of the Italian commercial networks of Big food. But the most significant data relates to the intrinsic value of the products in question. If the identical goods are sold at extraordinarily lower prices (-80% to the final consumer in other countries), who and what is the Italian consumer paying?
It is time for the consumer takes control of the supply chain and real awareness of the so-called 'value chain', thanks to initiatives such as #Marcadel Consumer, # ChièilPadrone, soon also in Italy thanks to the non-profit association of the same name.
Dario Dongo
Footnotes
(1) The concept of 'quality', on products such as those mentioned, must be understood in the sense of homologation and standardization. That is to say that the goods manufactured in such a way as to guarantee systematic compliance with the requirements set out in the technical data sheets. Regardless of any evaluation of theunsustainability of raw materials such as palm oil or on the nutritional characteristics of foods
(2) The nutritional quality of the aforementioned food lines is indeed deplorable, since they are mainly junk food (in technical jargon HFSS, 'High in Fats, Sugar and Sodium '). But until Italy introduces policies of nutritional education and the prevention of diseases related to unhealthy nutrition, these products will continue to garner a broad consensus. And i nutritional profiles of the junk food will not be improved until serious measures such as the NutriScore (synthetic nutritional information with color codes) and the 'Sugar Tax'
(3) The risk of any qualitative discrepancies is thus addressed and kept under control 'in pain', which the countries of the Visegrad bloc denounced in Brussels. The European Commission has therefore activated a special public monitoring system on the phenomenon 'Dual Quality Foods'. See the article https://www.greatitalianfoodtrade.it/consum-attori/dual-quality-foods-juncker-alza-la-voce
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
