Ice cream produced in Lithuania costs less in a Latvian store, and Lithuanians doubt whether it is really related to the different costs in the two countries, writes the Lithuanian public media LRT.
Paulius from Lithuania shopped at the Rimi supermarket in Latvia and noticed that Baltija ice cream, produced in Lithuania, costs 1.59 euros. He told LRT.lt that the same ice cream is much more expensive in Lithuania.
In Rimi chain stores in Lithuania, a Baltija ice cream cone costs 2.49 euros. Rimi commented that the difference in price is due to the difference in costs between the two countries. In a written response, Rimi stated that the price of products is affected by various factors, including energy resources and rental prices.
However, Petras Čepkauskas, representative of the price comparison platform Pricer.lt, points out that there may be other factors as well. “There are a few things Rimi doesn’t talk about.
First, there is the behavior of Lithuanian producers who make their money in the home market because the brand is better-known
and they maximize their earnings here. The second thing is that in a foreign market, they have to fight with local ice cream brands,” Čepkauskas says. “Our producers do this often,” said Čepkauskas.
According to the data of the Lithuanian Statistical Office, during last year’s price increase, Lithuanian manufacturers raised the prices of their products at home by an average of 35%, while in other countries – by about 10%.
Čepkauskas pointed out that, taking into account that the price increase for food products in Lithuania was almost the highest in the European Union, and the prices of raw materials are now falling, this is elementary profit making and unwillingness to offer a lower price to the Lithuanian consumer.
Baltija ice cream is produced by UAB Unilever Lietuva Ledų gamyba, which was founded in 1992 as Ingman Vega. The company became part of the Unilever concern in 2011.
Read the whole article in English here: https://www.lrt.lt/en/news-in-english/19/2036213/why-lithuanian-ice-cream-cost-less-in-latvia