BILLA leads the way in plant-based foods

Sales of reduced-price plant-based products are 33 percent higher at BILLA

BILLA is also a pioneer in the pricing of plant-based foods, a much-debated issue, as it seeks to make these products affordable for everyone in Austria. The company was already offering 30 low- or lower-priced products when it reduced the price of another 20 items in November of last year. Its aim was to ensure that all Vegavita products are sold at the same price or lower than their animal-origin counterparts. Since the implementation of these price cuts, sales have risen by 33 percent. New Vegavita products with an animal-based equivalent will be automatically sold at the same price or less if possible.

Verena Wiederkehr, Head of Plant-Based Business Development at BILLA explains, Part of our plant-based strategy is always to keep an eye on prices – and that has been true from the very beginning. Our aim is to make plant-based foods affordable for everyone. Levelling the price of animal products and their plant-based counterparts is an important step and one that has been very well received by our customers. This is evident from the impressive 33 percent increase in sales of discounted plant-based products. We are obviously making the right investments. As food retailers, we are proud to be sending an important signal and covering the costs associated with this.

One in 10 cartons of milk sold is already plant-based.

Plant-based milk, in particular, is becoming increasingly popular with sales in Austria rising by 21 percent between 2020 and 2022. At BILLA and BILLA PLUS, one in 10 cartons of milk sold is already plant-based. However, this milk is still being taxed at 20 percent, while the tax rate for animal milk is just 10 percent. This makes between 15 and 25 cents’ difference per carton – which matters, particularly in times of rising prices and inflation. At the start of the year, to mark Veganuary, BILLA set an example by refunding its customers this extra amount of value-added tax on its approximately 100 refrigerated and unrefrigerated plant-based products.

Taxing plant-based and animal milk at the same level would provide a financial incentive for our customers, while also allowing them a real choice based on their individual tastes. Particularly in times of rising prices, it is important to give customers a financial break, as various European countries, such as France, the Netherlands and Finland, have already done by setting the same rate of VAT for both animal and plant-based products, Wiederkehr adds.

BILLA PFLANZILLA: A flagship project in the heart of Vienna

In September 2022, as part of its plant-based strategy, BILLA launched a flagship project, BILLA PFLANZILLA, Europe’s first store in the traditional food retail sector to offer exclusively plant-based products. With this pioneering step, BILLA became the go-to destination in the heart of Vienna for plant-based products. More than a year later, demand is still high, and enthusiasm is clearly warranted. The store, decorated in green and yellow, carries more than 2,500 plant-based products; 800 more were added at the end of October. Sixteen percent of the items in BILLA PFLANZILLA’s inventory are available only from the 200 square metre store or from BILLA’s online shop. The wide range of products offered at BILLA PFLANZILLA illustrates the diversity of plant-based foods and their consumers, and underscores BILLA’s innovative capacity. Some 137,000 customers have visited the store since its opening. The item purchased more often than any other is the plant-based nougat croissant. The most popular plant-based private-label product is Vegavita Extra Pikant with sunflower protein, followed by smoked Vegavita Tofu made from organic soy from Austria and Vegavita ground meat alternative.