Today, if you push a shopping cart through the aisles of Penny, a well-known discount store, you might be in for a surprise. Some items you normally buy may suddenly be more expensive than expected. No, Penny is not trying to increase its profits, but is launching a remarkable experiment: they calculate the “true” cost of products by taking into account their environmental impact.

ClaimsFact check
Penny raises prices out of greed for profit.False – The price increase is an experiment to point out the hidden environmental costs that occur in the production chain. The additional income is donated.
Prices for some foods have doubled.True – Prices of some select products have been increased to reflect true environmental costs.
Only nine products are included in the experiment.True – Penny chose nine different products for the experiment.
The experiment was accompanied by scientists.True - scientists from the Nuremberg University of Technology and the University of Greifswald accompanied and analyzed the experiment.
The experiment could turn food into luxury goods.False – It was emphasized that food, especially in discount stores, should not become a luxury item. The experiment is limited in time and serves to raise awareness.
All products purchased from Penny contain hidden environmental costs.True – All products have hidden environmental costs. However, the experiment only applies to the nine selected products.
Food production impacts climate, water, soil and health.True – Food production processes have multiple impacts on the environment, including climate, water, soils and potentially our health.
Penny does not use its market power to promote environmentally friendly production.True and False – According to critics such as Foodwatch, Penny could be doing more to promote more sustainable practices. However, through this experiment, Penny is trying to raise awareness about environmental costs.

The discounter is entering unexplored territory

The Rewe subsidiary is significantly increasing the prices of selected products for a week in order to raise awareness of the true costs of the items. For example, the price of a strawberry yogurt suddenly rises from 99 cents to 1.44 euros, and the price of a pack of Vienna sausages jumps from 3.19 euros to 6.01 euros. A total of nine items in penny markets will become more expensive until August 5, 2023.

“We see that many of our customers are suffering from the persistently high food prices,” says Penny manager Stefan Görgens. “Nevertheless, we have to face the uncomfortable message that the prices of our food along the supply chain do not reflect the environmental costs.”

Foodwatch condemns Penny's action

Foodwatch, a consumer protection organization, has sharply criticized the initiative. They describe Penny's action as a "pure PR stunt". While Penny charges “true” prices for nine products, the discounter pushes the prices for many other environmentally and climate-damaging foods, such as meat, to the minimum.

“Instead of offering two kilograms of fresh chicken legs at a promotional price of 5.99 euros, as was the case this week, Penny should use its market power to promote more environmentally friendly production across the entire product range,” demands Foodwatch.

What is the “true” cost of our food?

But what are these “true” costs that everyone is talking about? Accompanied by scientists from the Nuremberg University of Technology and the University of Greifswald, Penny tried to calculate this. They take into account the impact a product has on soil, climate, water and health.

An example of this is Maasdam cheese. The original price is 2.49 euros, but taking into account the “true” costs, 4.84 euros are required. Climate-damaging emissions, such as methane or CO₂, account for 85 cents. The impact of feed production on the soil results in an additional cost of 76 cents, and pesticides and other health effects add 63 cents. Additional pollution of groundwater by fertilizers adds another 10 cents.

These 9 products are becoming more expensive:

DesignationCosts (new)Costs (old)
Mühlenhof Vienna sausages6.01 euros3.19 euros
Naturgut organic Vienna sausages5.36 euros3.29 euros
San Fabio mozzarella1.55 euros0.89 euros
Naturgut organic mozzarella1.92 euros1.29 euros
Penny Zukunftsbauer fruit yoghurt1.44 euros0.99 euros
Naturgut organic fruit yoghurt1.56 euros1.19 euros
Lindenhof Maasdam slices4.84 euros2.49 euros
Naturgut organic Maasdam cheese slices3.70 euros2.19 euros
Food For Future Vegan Schnitzel2.83 euros2.69 euros

The reaction of environmental economists

Andreas Löschel, Professor of Environmental Economics and Sustainability at the Ruhr University Bochum, sees Penny's campaign as an important step towards raising awareness. “There are many products that are cheap at the expense of the environment,” he says. “It’s important to show this.”

However, Alexandra Dehnhardt, an environmental economist at the Institute for Ecological Economic Research in Berlin, points out that determining these so-called “external costs” can be challenging. She still recognizes Penny's campaign as a good approach to making consumers aware of the costs.

Penny, who is part of the Rewe Group, does not plan to keep the additional income, but rather intends to donate it to a project to promote climate protection and protect family-run farms in the Alpine region. Heilbronner Stimme ’s reporting, the “true prices” campaign is intended to create awareness of sustainability.

Conclusion : Penny's initiative is certainly not without controversy. Although it has attracted criticism, it has also launched an important debate. It challenges us to question the true cost of the products we consume every day, while considering their impact on the environment. And this is undoubtedly a step in the right direction to create greater awareness of environmental issues and encourage more sustainable consumption habits. Only time will tell whether other retailers will launch similar initiatives and whether this ultimately leads to a change in consumer behavior.

Also read:

The Penny scandal: a reflection of television journalism?


If you enjoyed this post and value the importance of well-founded information, become part of the exclusive Mimikama Club! Support our work and help us promote awareness and combat misinformation. As a club member you receive:

📬 Special Weekly Newsletter: Get exclusive content straight to your inbox.
🎥 Exclusive video* “Fact Checker Basic Course”: Learn from Andre Wolf how to recognize and combat misinformation.
📅 Early access to in-depth articles and fact checks: always be one step ahead.
📄 Bonus articles, just for you: Discover content you won't find anywhere else.
📝 Participation in webinars and workshops : Join us live or watch the recordings.
✔️ Quality exchange: Discuss safely in our comment function without trolls and bots.

Join us and become part of a community that stands for truth and clarity. Together we can make the world a little better!

* In this special course, Andre Wolf will teach you how to recognize and effectively combat misinformation. After completing the video, you have the opportunity to join our research team and actively participate in the education - an opportunity that is exclusively reserved for our club members!


Notes:
1) This content reflects the current state of affairs at the time of publication. The reproduction of individual images, screenshots, embeds or video sequences serves to discuss the topic. 2) Individual contributions were created through the use of machine assistance and were carefully checked by the Mimikama editorial team before publication. ( Reason )