Mercadona's Mustard: Made in the US and Five Times Pricier There

Mercadona's Mustard Costs Five Times More in the US Than in Spain

How can a product made in the United States sell there for five times the price it does here? That's the question when comparing the Spanish chain's mustard jar with its supposed equivalent at Walmart. Available data suggest that the same product, or a very similar one, sells for about $5 in the US, $8 in Switzerland and just 40 cents in Namibia. The disparity is brutal.

Why Does the Same Product Cost More in Its Country of Origin?

A common explanation is that price doesn't reflect cost, but what the consumer is willing to pay. In markets with greater purchasing power, willingness to pay is higher. But there are also structural factors: Spain barely applies tariffs to US products, and American producers sell large volumes, which lowers the export price. Something similar happens with peanuts or chickpeas imported from the US.

However, some nuance that it's not the same product. The Mercadona jar could be an imitation of the original design, not a direct import. If so, the comparison loses strength.

The Olive Oil Precedent

The case recalls that of Spanish olive oil, which during the price crisis sold cheaper in the UK or Germany than in Spain. Demand was thought to be inelastic, but consumers responded and prices had to adjust. The lesson: the market isn't always as rational as we're told.

Meanwhile, the mustard remains on the shelf. And the price depends on where you look.