The Croatian Competition Agency (CCA) has initiated a sector inquiry focusing on the vertical relationships between suppliers and retailers in the food and non-food supply chains within Croatia. This inquiry aims to gather insights into the financial and commercial terms of business, pricing mechanisms, and contracting models, particularly in light of the rising retail prices observed during 2022 and 2023.

The inquiry covers the period from January 2022 to July 2024 and includes a public call for data submissions from various stakeholders in the market. However, no responses were received. The CCA collected data through questionnaires sent to 49 retailers and 23 suppliers, including producers and distributors, across eight product categories such as meat, dairy, and beverages.

Key findings indicate that suppliers, especially distributors, frequently changed their price lists, which in turn affected retail prices. Food prices in Croatia rose by 26.1% compared to the EU average of 24.3%, with significant contributions from import price increases. Retailers generally set their prices independently, although they may consider supplier proposals for promotional pricing.

While most retailers felt their bargaining position was equal, smaller regional retailers reported feeling pressured by suppliers. The inquiry also noted that most suppliers were satisfied with their market position, although some expressed concerns regarding unfavorable conditions for perishable goods.

Despite the dynamics in pricing, the inquiry did not uncover any structural competition concerns or prohibited agreements among market participants. However, practices resembling potential tying will be further investigated. The overall increase in retail prices is attributed to rising input and procurement costs, particularly for distributors, with the international supply chain playing a significant role in the price hikes.