Autorité de la concurrence Highlights 40% Higher Food Prices in Martinique Linked to Groupe Bernard Hayot's Dominance

A recent report by the French Autorité de la concurrence has brought to light the persistent opacity surrounding food prices and profit margins in Martinique's food distribution sector. According to the authority's February 2025 investigation, food prices in Martinique are on average 40% higher than in mainland France, a price gap that continues to widen annually.

This report follows accusations made in January 2025 by Minister Manuel Valls, who claimed that Groupe Bernard Hayot (GBH), the region's dominant food distributor and largest private employer in the overseas territories, was "suffocating" the local economy. The investigation scrutinized the operations of four key companies in Martinique’s food sector: GBH, Parfait, CréO, and SAFO.

Benoît Cœuré, president of the Autorité de la concurrence, expressed satisfaction at contributing new public data regarding the profitability and pricing structures of these companies. He acknowledged the complexity of the sector's supply chain, which involves about 14 stages from the shipment of flour from Le Havre to final sale in Martinique. The investigation revealed oligopolistic dominance at multiple levels, creating a "black box" effect that obscures the internal workings and pricing strategies of these entities.

Crucially, the rise in "approach costs"—expenses related to shipping and logistics to this island territory—explains roughly 70% of the price differential observed, a figure also confirmed by Groupe Bernard Hayot itself. However, questions remain about the remaining margin and the company’s pricing practices.

This investigation brings to the fore longstanding concerns about food affordability in Martinique, highlighting how market concentration and supply chain complexity contribute to high consumer prices. It sets the stage for further scrutiny of private sector roles in local economic conditions and could influence regulatory or policy responses in overseas territories.

As of now, the Autorité de la concurrence’s findings provide a detailed and nuanced look at food price inflation in Martinique, emphasizing the need for greater transparency and competition in the market.