The French supermarket chain Carrefour has withdrawn PepsiCo products from its stores in four EU countries due to a dispute over price hikes.
Starting yesterday (4 January), items like Doritos, Pepsi, and 7up have been removed from Carrefour shelves in France, Italy, Spain, and Belgium. Instead, the shelves will bear signs indicating that the brands are unavailable “due to unacceptable price increases,” as reported by a spokesperson for the French supermarket giant.
The decision by Carrefour affects more than 9,000 stores across the four countries, constituting two-thirds of the retailer’s worldwide presence.
In several EU countries, various grocery retailers have also ceased placing orders with consumer giants due to rising prices. In May last year, the Belgian supermarket chain Colruyt restricted its acquisition of Mondelez products, including Milka chocolate and Oreo biscuits, following a disagreement over product pricing.
PepsiCo’s Response to Carrefour’s Move:
In a statement, PepsiCo said: “We’ve been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available”.
In October, the food giant announced its intention to implement “modest” price increases this year, as demand remained resilient in the face of price hikes. This positive market response prompted the company to raise its 2023 profit forecast.
Carrefour has a history of engaging in battles over prices. Last year, the French multinational initiated a ‘shrinkflation’ campaign, where warnings were placed on products that had reduced in size but were priced higher.
In a bid to mitigate inflation, the French government has urged retailers and suppliers to conclude annual price negotiations in January, a two-month acceleration from the usual schedule. France, which rigorously regulates its retail sector, mandates supermarkets to engage in price negotiations with food and drink producers only once a year. This measure aims to safeguard the nation’s farm industry.
“The French supermarkets, we know, are very, very ready to de-list people if they don’t like the deals that they get,” said James Walton, chief economist at the Institute of Grocery Distribution. “Obviously that’s a last resort, because nobody wins if the goods that people want are not available on the shelves.”
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