Energy is becoming more expensive – this is also noticeable in the companies of the Federal Republic. And because the high costs affect all areas of life, they cannot simply be passed on to customers.
In view of skyrocketing energy costs, bakers in Germany are demanding support from politicians. “The promise of the federal government not to leave anyone alone in the crisis has not been kept so far. We demand that politicians act now and support our systemically important industry,” said Daniel Schneider, the general manager of the Central Association of the German Bakery Trade, of the “Neue Osnabrücker Newspaper”.
It is estimated that 70 percent of bakeries run on gas. According to Schneider, switching to alternative energy sources is not an option for many companies in the short term: on the one hand, investment costs are high and, on the other hand, oil tanks, for example, are difficult to obtain. Schneider sees limited opportunities for businesses to pass on the rising costs to customers.
“Prices cannot simply be increased in a highly competitive market. After all, customers are also becoming more price-sensitive, especially in the current times. It is therefore high time for politicians to act to relieve our companies with over 240,000 employees,” he said. Otherwise, the combination of the multitude of crises and burdens could mean the end for many a company.
Brauer also affected
The brewers in the Federal Republic of Germany are also “with their backs to the wall” because of the rising costs, according to the general manager of the German Brewers’ Association, Holger Eichele. He told the editorial network Germany. He is concerned “that many companies will be on their knees in view of the cost development. After all, we are only at the beginning of this development.” The industry is trapped in a “cost tsunami”.
He therefore appealed to the trading groups to pass on higher prices for beer to customers. “The cost increases are so dramatic that at some point they will have to be at least partially passed on to the price,” said Eichele. “Now the dominant retail groups have to take responsibility.” That would be an important signal for the industry to ensure the survival of the breweries in the crisis, said Eichele.
The actual cost increases would only come in the autumn with the increase in gas prices and next year when long-term supply contracts expire and new prices are set. “Many effects are therefore provided with a timer – they will not be noticeable for food companies until 2023,” warns Eichele.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
