Cristaline is the cheapest water on the market, but also the best-selling in France. Every year hundreds of millions of bottles pass through supermarket checkouts. Its price has been stable for 20 years, but due to inflation, which amounted to +5.2% last May according to INSEE, the pack of 6 bottles of 1.5 liters will increase by 10% .
Currently it costs 1.02 euros on average, it will now cost 1.12 euros. “Over the past few months, production costs have increased” explains Olivier Dauvers, journalist retail specialist. VSwhich forced the Alma group, owner of Cristaline, to increase its prices.
“Water is a heavy product that is consumed in large quantities.”
Olivier Dauversat franceinfo
And with rising fuel prices, the cost of trucking has skyrocketed. Added to this is the increase in the price of the plastic with which the water bottles are made. This rise in the cost of plastic dates back to 2020, with the confinement linked to the health crisis which led to the closure of several plastic production sites.
During the economic recovery in 2021, the mismatch between supply and demand caused prices to soar, and the situation deteriorated further with the war in Ukraine. The barrel of Brent (crude oil) has increased by 51% in one year, which logically leads to higher costs for the manufacture of plastic, the famous PET (polyethylene terephthalate).
The Alma group’s policy has always been to charge the lowest prices on the market. It is therefore a blow for the company of La Ferrière-Bochard in Normandy. “Since 2002, and the changeover to the euro, the brand has always compensated for increases in the cost of raw materials with productivity gains”, explains Olivier Dauvers.
For example, the group had decided to lighten the weight of the bottle, which went from 42 grams to 21 grams in just over 20 years. “A positive initiative for the ecology, but also for the economy, because if a bottle is lighter, the cost of transport will be lower”, continues the journalist. Since June, the group has therefore increased its prices by 10% with its distributors, but the increase on the shelves will be gradual with the game of competition.
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Cristaline is a symbolic product with a psychological price that is always risky to increase. “The distributors will play the role of shock absorber”, explains Olivier Dauvers, which should protect consumers from a sharp rise. Cristaline is one of the 120 products included in the Leclerc group’s anti-inflation shield. This device, set up last month, makes it possible to compensate in vouchers (on the loyalty card) the tariff increases linked to inflation.
“The use of tap or jug water is expected to increase in the future.”
Olivier Dauversat franceinfo
The French are very attached to bottled water. They consume about 135 liters per year per person, or more than 9 billion liters for the population as a whole. France is one of the 5 countries in the world that consume the most plastic bottles, behind Mexico and Thailand (which do not have access to drinking water), Italy and Germany.
Today, however, the consumption of bottled water is gradually declining, for ecological reasons. “With the development of bulk, the relationship to packaging is changing”, continues Olivier Dauvers. According to him, the consumption of tap water or water that is filtered in carafes at home should develop in the future.