Since January 1, the "Ordinance on sales at a loss and the organization of food product promotions" has come into force in France. It regulates, among other aspects, the promotion of food products at the points of sale. The objective is to prevent these products from losing their value.
According to the French Ministry of Agriculture, the volume of food products subject to promotions has not stopped growing in recent years, going from 14% of the volume in 2000 to 20% in 2016. Promotions bring the price down without providing more added value to producers, processors, logistics operators, distributors, etc. They also make it more difficult for consumers to assess what a fair price is in the case of agricultural products. "Lastly, the consumer does not necessarily buy the products they need, and furthermore, these promotions generate waste at a significant level, far exceeding the positive effect of the lower prices."
Consequently, the ordinance dictates that for two years, and on an experimental basis, promotions on food products cannot exceed 34% of the retail price, which entails the ban of promotions like "2 for the price of 1." It will, however, be allowed to sell three products for the price of two. Furthermore, the total volume subject to promotions will be limited to 25% per year.
The measure's implementation will be assessed to look into its impact on the agro-food sector, according to information from the Ministry of Agriculture and Food of France.
Source: fepex.es