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He vowed never to start a price war over the candy.
As Nettavisen wrote yesterday, the holiday item price war is starting in earnest this week, with some major cuts to 43 holiday items.
Read more here: The Christmas price war escalates: cut prices of 43 Christmas items
Another item that has traditionally been a typical “price war” item was also slashed this week, namely small items.
Interestingly, this is the first time in three years that there has been a price drop on this item. Since then, the three low-price chains Kiwi, Rema 1000 and Extra have had a “ceasefire” on small goods, which for much of the period has been 14.90 hectares. The only price change was an increase to 16.90 per hectare after the introduction of the sugar tax, which has now been removed again.
This week, however, the three chains are selling small items at NOK 9.90 per hectare.
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For several years, there was an intense price war for small items during the holidays, which probably peaked in 2016, when the price fell to NOK 2.90 per hectare at Easter.
More recently, in October 2017, there was a price war, on the occasion of Halloween. Then the three low price chains lowered their prices to NOK 7.45.
Also read: The price war caused chaos on supermarket shelves: – Sleipt
Later, however, a host of leaders and health experts grew weary and came out with strong criticism of the networks. Since then, there have been shutdowns and the chains made it clear that they should not restart.
– We get a lot of criticism in relation to Halloween. Then we promised we wouldn’t start a price war over the goodies, and we keep it, says network director Christian Hoel on the Coop Extra to TV 2 network before Easter 2018.
Extra-cut
However, it was also Extra who took the initiative to lower the price of small items this week. Harald Kristiansen, Coop’s chief communications officer, however, insists this is not a breach of promise.
– We have said that we should not have a price war on small items of the kind that was before, and we do. This is a regular weekly campaign where we run gift offers, he tells Nettavisen.
– And are competitors like you in a price war?
– Yes, I think so, but when there has been a real price war, they have dropped to three crowns. We are not at those levels now, he says.
– The last time there was a price war on small items, in 2017, the price was NOK 7.45 per hectare. So you got a lot of criticism. Is the difference up to NOK 9.90 that big?
– We think this is not an abnormal price for a weekly sale, says Kristiansen, who comes with a price promise.
– So the prices of small goods do not fall more in Extra?
– No, not as part of this campaign. So unless competitors start a price war, it doesn’t, Kristiansen says.
Critical
One reacting to the new price cut is Jøran Hjelmesæth. He is Director of the Center for Morbid Obesity in Vestfold, Professor at the University of Oslo and Director of the National Nutrition Council.
– The grocery chains have already reached an agreement with the authorities that they will not reduce sales of added sugar products. The letter of intent for grocery producers states that the chains’ common goal is to reduce sales of high-sugar products, he tells Nettavisen.
Worried
The 2016 agreement establishes, among other things, that the parties’ goal is for the population’s intake of added sugar to be reduced by at least 12.5 percent by 2021.
– The chains have reached an agreement that they break by lowering the price. That worries me, because lower prices mean we buy more. If people buy more, eat more, and then gain weight. This increases the risk of cardiovascular disease, diabetes, and premature death. That risk is particularly worrisome for children and youth who are a target group for these products, he says.
– But is it not allowed to enjoy sweets at Christmas?
– Yes, I completely agree with that, it is allowed to enjoy it at full price. The comfort is no less at full price, perhaps the opposite. Now people have a month to eat thicker. Statistically, you keep half the weight gain you get at Christmas for the rest of your life, says Hjelmesæth.
However, Coop’s communications manager, Kristiansen, disagrees that this is a breach of promise.
– What we have said is that we should not start a savage price war, and we do not believe that we have, says Kristiansen.
Following
However, Kiwi and Rema 1000 also followed Extra’s price cuts.
– At Kiwi we promise that we will be the cheapest whatever happens, whether it be fruits, vegetables, fish or sweets. So when one of our competitors chooses to bid on small items, we lower prices accordingly, Kristine Aakvaag Arvin, Kiwi communications manager, tells Nettavisen.
– But have you pledged to contribute to lower sales of sugar and fat goods?
– We work for health, but in any case we will be the cheapest in all products. Anything else is not an option. At the same time, we will continue to reduce sugar, salt and saturated fat in our products, and continue to emphasize fish, fruits and vegetables. But it is also soon Christmas. If you want to buy Christmas marzipan or other sweets now in the run-up to Christmas, you must be able to do so.
– But then it must be so cheap?
– We must ensure that we are the cheapest on all items. We do not choose not to participate in anything on behalf of the client. We will inspire healthy choices, and of course we will hear criticism from Hjelmeseth and others who may think something about it. At the same time, there is stiff competition and during the season it often happens that products that are important to the customer go down in price. This applies to both Christmas marzipan before Christmas and ice cream through May 17, Arvin says.
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