Grocery brands accused of unjustified price rises

TOP grocery brands put their prices up more aggressively than could be justified by rising costs during the inflation crisis, the competition watchdog found today.

-  Daniel O’Boyle

The Competition and Markets Authority (CMA) said it had evidence that average profit per unit sold for staples such as beans, mayonnaise and pet food, has increased for branded products.

But it also found that most supermarket customers simply switched to cheaper own branded alternatives and were not victims of "profiteering".

However, the watchdog found one glaring exception, baby formula, where a lack of own-brand products and a reluctance to "trade down" has led to manufacturers making bigger profits per unit at the expense of parents.

The CMA today published an update on a review into grocery prices that it launched in the spring. Food prices have soared in 2023, with items like bread and cheese rising by more than 20% year-on-year.

But the watchdog said there was little evidence of supermarkets themselves profiteering as the high level of competition in the sector means profit margins remain low.