France sets limits to promotions at points of sale
Staff Writer |
Since January 1, the "Ordinance on the sale at a loss and the organization of promotions for food products" has come into force in France, which regulates, among other aspects, the promotion of food products at the places of purchase Ln order to avoid the destruction of the value of these products.
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According to the French Ministry of Agriculture, the race for promotions in food products has not stopped, growing in recent years, going from 14% of the volume in 2000 to 20% in 2016.
In addition, promotions destroy the value without providing more added value to the actors (producer, transformer, logistics, distributor ...), causing, in addition, the loss of reference among consumers in relation to the fair price of agricultural products.
"Finally, the consumer does not necessarily buy the products he needs and, in addition, these promotions generate waste at a significant level, far exceeding the positive effect of lower prices."
Consequently, the ordinance provides, for two years and on an experimental basis, that the promotions on food products can not exceed 34% of the sale price to the consumer, which supposes the prohibition of offers of type "2 for the price of 1", however, the purchase of three products will be allowed for the purchase of two.
In addition, the global volume of promotions will limit 25% of the annual purchase volume of the brand.
This measure, effective from January 1, is experimental for two years, and is associated with a monitoring device to assess the impact on the agri-food sector, according to information from the Ministry of Agriculture and Food of France, collected by FEPEX . ■
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