Shoppers think retailers are profiteering, as prices of food rise

Consumer trust in the food and drink industry is low, claims national Consumer Council

One in three UK shoppers blames the industry for rising food and drink retail prices, according to exclusive research commissioned by Food Manufacture.

The Harris Interactive Omnibus survey of 2,228 men and women of different social, regional and age groups showed 34% attributed price hikes to supermarkets, manufacturers and farmers trying to boost their profits. Of these, 21% blamed supermarkets, eight per cent blamed processors and six per cent blamed farmers.

"That such a significant percentage appear to blame the industry for rising prices underlines the fact that many consumers simply don't trust the food industry," said the National Consumer Council.

Graeme Jack, communications director at Robert Wiseman Dairies, said: "In the dairy industry it's been well documented that global demand for dairy products, combined with short supply has seen prices increase. I'm surprised there's a lack of understanding given the acres of media coverage."

Greencore Group communications director Jonathan Grant-Nicholas said: "It is disappointing that 34% of the sample blame the food industry for increased prices, although encouraging that manufacturers do not seem to be shouldering the blame. It is, however, unfair on supermarkets, who are battling to keep prices down."

However, 53% of those surveyed did attribute rising prices to the knock-on effect of rising ingredients, packaging, distribution and production costs. Six per cent blamed other reasons and seven per cent were unsure.

On average, 84% thought prices would keep climbing throughout 2008. Just nine per cent thought they would not and seven per cent did not know.

A total of 18% said they did not know how they would cope if food pri

ces kept rising. Three in 10 in Wales and 24% of those in the north east and Yorkshire said the same, while 59% said they would have to budget more carefully, but they would manage.

A total of 16% said it would not affect them. "This supports our belief that consumers will be tightening their belts a little in 2008," said a spokesman for Asda. "There has been inflation in certain categories this year, however Asda is doing a good job keeping the overall cost of our customers' baskets down."

A Tesco spokesman said: "While the price of some products has gone up, we have made significant reductions on other products so that overall, shoppers are still saving money."

On average, 67% believed food and drink prices had risen in the past three months, but this proportion increased to 84% of people aged 55 and over.