Giotis’s appeal to keep the food industry alive in the crisis

LAST UPDATE: 09.28

By George Lampiris

Many businesses, especially those related to retail and consumption, are currently seeking to keep their businesses as far away from the red zone at the bottom of the balance sheets as possible. This was pointed out by the CEO of Bosch, Giannis Kapras, a few days ago. The reality is that the data on the consumer goods sector is not very auspicious, as it is the first or one of the first to be hit in times of crisis, with consumers rushing to cut spending or even unnecessary spending in the past. .

In this way, a large part of the so-called spontaneous markets is lost, which are the hidden force in retail and relate to the unplanned purchase of a consumer during his presence in the store. In fact, despite the fact that Bosch in Greece is running at a double-digit sales growth rate in the first half of 2022, he predicted a contraction from 2023 onwards, announcing a new cycle of increases in July, which will bring its average increases that have taken place. from the company at the level of 10% for this year.

Giotis: Challenges from the successive crises of recent years

At another event, namely at the general assembly of SEVT, Giannis Giotis, president of the Association of Greek Food Industries and head of the eponymous food industry, addressed the challenges facing the industry in the last 3 years, due to the pandemic, but also the recent successive crises (energy, geopolitics), in his recent speech at the general assembly of SEVT. The reality here is that in the current period the food industry is going through its own period of crisis, despite the fact that during the first two years of the pandemic, supermarkets, a key food distribution channel, gained significantly, increasing their sales.

However, the pressures at the moment are such that last May, the volume consumption in Greek supermarkets reached -5%, from about -8% which was the reduction of consumption in April, strongly influenced by the price increases that have forced the consumer to be more restrained.

Characteristic was the reference of Giannis Giotis to the “over-effort made by the companies in the sector to respond to the new data, in a congested environment where the viability of the Food Industry is at stake. He asked for the support of the State to keep the industry alive and competitive. which has enormous weight for the domestic economy and society ”.

Vettas: The timeless features of the economy that lead to introversion

Nikos Vettas, General Manager of IOBE, referred to the critical situation for
Greek economy that after the pandemic crisis and amid inflationary pressures, rising financing costs and global uncertainty must find itself at high growth rates. Describe timeless features of the economy that lead to introversion and therefore undermine its growth, as well as others that may
lead to a positive trend, especially through innovative investments. He stressed the need for policy conditions, such as supporting a stable framework with a lower workload.