Consumers still believe the food and grocery industry is profiteering at their expense ­ to the tune of 84p in every £1 spent. That's the startling conclusion in a survey from IGD's Consumer Watch division. The report reveals little change in perception since the IGD last asked consumers about profits in 1999, despite the multiples being largely cleared of profiteering by the Competition Commission inquiry. The findings are likely to prompt renewed calls for an all industry publicity campaign to "educate consumers about the real facts." There could also be proposals for the trade's three main organisations, IGD, FDF and BRC, to join forces in a PR drive ­ a programme which many industry figures believe should also include politicians and the media. Anna Dawson, IGD programme manager, said on Wednesday: "Our research findings show consumers still have little understanding of how the food industry makes or uses its profits and have an exaggerated view of how large these profits are. "This reinforces the need for co-ordinated efforts across the supply chain to make consumer friendly' information available on how food is produced, how costs are incorporated and how profits are made and used to offer more benefits to consumers. "This will prevent them from filling in the gaps in their knowledge with flawed, and often negative conclusions." The survey of 1,000 consumers indicates that they think that more than a third of the money they spend in store goes straight into the multiples' pockets. The survey says consumers believe 37p in every £1 went to food retailers, 33p to food manufacturers and 14p to farmers. But according to IGD data, the operating profits of leading UK retailers Tesco, Sainsbury and Safeway was only 4.8p in £1 in 2000. The average profit for the top 150 leading food manufacturers was 6.7% for 2000, and farmers did not achieve the 14p profit. Safeway communications director Kevin Hawkins said consumers consistently overestimate profits because they do not understand the food chain. He said: "We make under 3p profit in every £1. Consumers don't understand supply chain costs. We are all struggling in current market conditions, and we cut prices as much as we can. There is no villain ­ but consumers and the media want a scenario where there is." - See Opinion, page 16 {{NEWS }}