Not much cheaper than brand discounters Migros or Coop: “Aldi price” doesn’t live up to its promise

Until recently, Aldi was using the price slogan for a new brand product: Alpro’s “unsweetened” oat milk. It’s been in the Aldi range since July. The discounter sells it for 3.49 francs per liter. The price is 3.50 francs at Migros and Coop.

Rivella, Thomy or Ovaltine at the same prices

This is not an isolated case, as an example from an observer shows. At Migros, Coop, Aldi and Lidl, nine out of ten branded products have the same price. Only products with identical packaging sizes sold by all four retailers were considered. This is only true for a few products. For example, Rivella, Coca-Cola, Evian, Feldschlösschen non-alcoholic, Thomy mayonnaise, Thomy tomato puree as well as Ovaltine chocolate, Ovaltine petit beurres and Ovaltine biscuits. Four dealers sell them for the same price.

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One in ten products has a very small price difference: Emmi’s Caffè Latte Macchiato glass is 5 cents cheaper at Aldi and Lidl than at Migros and Coop.

55 percent more expensive than Germany

The new launch of Alpro oat milk shows how such uniform prices can arise: Aldi has adapted to the high Swiss price level set by Migros and Coop. Because a high sales price is not mandatory. Aldi sells the same product in Germany for only 2.25 francs. In Switzerland, Aldi charges 55 percent more, even though the product can be imported duty-free.

Article from “The Observer”

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Media outlet Aldi writes: “Compared with Germany, Switzerland has, among other things, higher wage, transport and construction costs along the entire value chain.” These costs will have an impact on the selling price.

Price watchdog criticizes weak competition

Of course, Switzerland is more expensive than Germany. But 55 percent? The price monitor mentions an average price difference of 30 percent compared to other European countries. In a report on food prices at the beginning of the year, he also wrote: “As a result of the high market concentration of Migros and Coop in Switzerland, this country experienced higher price increases.” Unlike in Germany, for example, price wars here may be “much less intense.”

Dealers apply to manufacturers

Retailers vehemently deny this. Competition is very intense. So how do the same prices emerge? “Cost prices are a determinant of sales prices,” Coop writes. We are committed to fair and market-based prices. According to Migros, similar prices for same-brand products can be explained, among other things, by the demands of the product manufacturers. “Margins at retail are very modest, so it’s no surprise that branded products are in a similar price range.”

But the “market environment” also affects prices

However, manufacturers do not impose retail prices on retailers. Migros openly admits that it also takes the “market environment” into account when determining store prices. In this case, the market environment is others’ prices.

Fly: You can often save money if you buy your own brands instead of branded products. Oat drink is sold in Migros and Aldi as their own brands in organic quality for around 2 francs per liter.