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Penny Supermarket Raises Prices to Reflect True Environmental Costs and Promote Sustainability Awareness

von Yuliya Khandozhko

For one week, nine products at the German discounter Penny will be more expensive – some of them almost twice as expensive as originally Tages-Anzeiger, NZZ and SRF to report. The new “true costs” now also include the environmental costs that arise in the production of food, i.e. the so-called “negative external effects”. With this marketing campaign, Penny wants to create awareness among customers of the effects of the production and consumption of these products on the environment.

The “negative external effects” are currently covered to a limited extent or not at all by prices. According to the NZZ, this means that these costs are indirectly borne by the general population.

Price calculated by scientists

Die action week was created in cooperation between Penny, the Technical University of Nuremberg and the University of Greifswald. To calculate the “true costs”, the scientists included the effects of the factors “soil”, “climate”, “water” and “health”. There was a wide spread in the consequential costs. Where the Maasdam cheese slices from Lindenhof are 94 percent more expensive, the vegan schnitzel from Food for Future is only 5 percent more expensive, according to the NZZ.

“We see that many of our customers are suffering from the persistently high food prices,” said Stefan Görgens, COO Penny, in one Message from Penny. “Nevertheless, we have to face the uncomfortable message that the prices of our food, which are incurred along the supply chain, do not reflect the environmental costs. We want to create awareness for this with the national campaign on the true costs. We also want to show solutions together with the Technical University of Nuremberg and the University of Greifswald.”

Additional income will be donated

The action drew both positive and negative reactions. According to SRF, Penny has been praised by consumer and environmental protection groups. There was criticism for this from the consumer organization Foodwatch, as Penny is also advertising a 2-kilo campaign pack of chicken thighs for 5.99 euros.

As Johanna Gollnhofer, Professor of Marketing and Consumer Research at the University of St. Gallen, told the NZZ, it was a successful marketing campaign, but it was questionable whether customers would develop more sustainable shopping behavior as a result.

Penny donates the additional income from the surcharge to the “Zukunftsbauer” project and increases the donation by an additional 50,000 euros.


2023-08-03 11:08:59
#Penny #True #prizes #environment

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