Greece in Talks on New Price-Cut Plan

The political leadership of Greece’s Ministry of Development remains in talks with market stakeholders over the new price-reduction program agreed in principle between the two sides. Meetings have already been held with the Hellenic Supermarkets Association (ESE) and the Federation of Hellenic Food Industries (SEVT), while a final round of discussions is pending with the Association of Greek Branded Product Industries (ESVEP).

Market sources stress that while SEVT represents food manufacturers, ESVEP’s participation is considered essential, as it encompasses importers, distributors, and producers of branded goods — both Greek and multinational.

Aiming for 1,000 Products

The development minister has repeatedly stated that the government’s goal is to include around 1,000 products in the program. Market insiders, however, express skepticism about this figure. Last year, when food inflation was particularly severe, only 66 companies participated, covering 705 product codes.

This year, inflationary pressures have eased, and companies have already launched a new wave of promotions that is expected to intensify in the run-up to the Christmas shopping season.

Lower Discounts Expected

In 2023, discounts under the scheme ranged between 5% and 15%. But given today’s market climate and ongoing company-led offers, observers say such reductions may not be repeated at the same scale. Ministry officials suggest that firms could channel part of their promotional campaigns into the program by adjusting their discount rates. For now, the market has not given a clear response.

Importantly, the program will not rely solely on supplier contributions. Supermarket chains themselves are expected to add their own discount margins on top of what they secure from suppliers, broadening the final benefit for consumers.