Neither Pepsi soft drinks nor Lay’s crisps, amid a price war between retailers and global food giants, Carrefour is removing PepsiCo products from its storefronts.
First edit: 01/08/2024 – 11:05
2 minutes
Carrefour has decided to withdraw from its shelves products made by American giant PepsiCo, which is facing the consequences of tense price negotiations in France between food manufacturers and supermarkets.
Since Thursday, there has been a sign on the shelves of PepsiCo products in Carrefour stores in France that says: “We no longer sell this brand due to an unacceptable price increase.”
Lay’s or Doritos chips, Quaker cereal, Pepsi or 7Up sodas, Lipton sweet tea… The windows were emptied.
Customers at a supermarket in Paris’ 16th arrondissement celebrated the decision.
“It doesn’t surprise me at all,” Edith Carpentier told Reuters. “I think there will be a lot of products that we leave out because they have become too expensive, and they are things that we can avoid, especially soft drinks, we don’t have to.”
According to a source close to the matter interviewed by AFP, the withdrawal of the brand will also apply to Carrefour stores in Belgium, Spain and Italy.
Over the past year, food retailers in several countries, including Germany and Belgium, have announced they would suspend orders from mass-market companies due to rising prices, a strategy that comes against a backdrop of increasingly tense price negotiations, with inflation and costs. to experience the crisis as a backdrop.
Difficult negotiations
The entire French distribution sector is strengthened until the end of the negotiations, which will pit supermarkets and hypermarkets against the major producers until the end of January. The objective is to determine the sales conditions (purchase price, shelf space, promotional calendar, etc.) of most products sold in supermarkets.
“Discussions with Carrefour have been ongoing for many months and we will continue to do so in good faith to ensure the availability of our products,” a PepsiCo spokesperson said, without commenting further on the ongoing negotiations.
Supermarkets say they mostly receive requests for price increases, and PepsiCo’s main rival, Coca-Cola, said in November it was asking for an average increase of 7%.
It’s rare for a retailer to engage with consumers and customers in this way,” noted one of Carrefour’s French competitors, who spoke on condition of anonymity, seeing it as “a way to put pressure on the manufacturer.” But “it’s fair game “.
In the succession of negotiations there is no shortage of shocking phrases and provocations. The representative of the E.Leclerc chain, Michel-Edouard Leclerc, for example, says he is committed to “breaking the face of inflation”.
The price of the shopping basket has increased in France by an average of 20% in the last two years.
2024-01-08 10:05:26
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