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Chris Smith's avatar

Having worked in this industry, I can add two things to this conversation which are very important.

Firstly, meat at supermarkets is often sold as a 'loss leader'. We hear a lot about how supermarkets do this with alcohol and it is part of the industry conversation; particuarly in terms of how this is deemed as a threat to pubs and restaurants, as well as potentially an issue regarding alcoholism. We have seen the Scottish government introduced miniumum unit pricing in regards to this challenge.

This is, in my opinion, a better way to think about a 'meat tax', which is unlikely to ever be politically viable. It is not about increasing the cost of meat, but preventing it from being sold at a loss...

The second part to this is the margin on meat substitute products. The way brands like Beyond Meat and Quorn even managed to get on supermarket shelves in the first place, is that they offer a really good margin to the supermarkets. Those brands make some money, but RRP is set at a level that the supermarket makes good margin too. It is therefore quite profitable for them to stock and sell, and so they are happy to do so. This was ten years ago, super important just to get listed. These days it's super important so that your meat substitute brand gets listed, over the many competitors. This dynamic is not at play when it's an 'own brand' meat substitute brand, which is why you can see such a discrepancy on those products in your research.

Fundementally, my view based on my experience is that it is the supermarkets, and not the meat substitute brands, that have to drive the change here, if we are to reduce the 'price gap''.

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Wolfgang Böhl's avatar

I completely agree. Interestingly, just yesterday the German supermarket chain Lidl announced that they are going to price meat substitutes at the same level as meat going forward. See here (German only): https://unternehmen.lidl.de/pressreleases/2023/231011_proteinstrategie

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