The Lower Eastern Times Opening The Third Eye
Related Articles
Carrefour (CARR.PA) is informing customers that it will no longer carry PepsiCo goods such as Pepsi, Lay’s crisps, and 7up due to increased costs, marking the latest dispute over pricing between retailers and global food corporations. Starting Thursday, Carrefour stores in France will display shelves of PepsiCo (PEP.O) products accompanied by a notice stating, “We are no longer selling this brand due to unacceptable price increases,” according to a spokesperson for the French retailer.
PepsiCo has not provided a response to the announcement.
In October, the U.S. company revealed plans for “modest” price increases this year, attributing the decision to sustained demand despite the upward price trend and subsequently raising its 2023 profit forecast for the third consecutive time.
Grocery retailers in various countries, including Germany and Belgium, have over the past year declared a halt to orders from consumer goods firms due to escalating prices, reflecting the intensification of price negotiations amid inflation.
The fate of existing PepsiCo products on Carrefour shelves remains uncertain, with the spokesperson noting that the retailer cannot prevent customers from purchasing items already on display.
The signage indicating the discontinuation of PepsiCo products will only be displayed in Carrefour’s French stores, as reported by local media, the spokesperson confirmed.
Carrefour has been notably proactive in challenging major consumer product and food companies regarding pricing. Last year, it initiated a “shrinkflation” campaign by affixing warnings to products that had reduced in size but increased in cost; however, it was not immediately confirmed if this campaign is ongoing.
As part of its efforts to combat inflation, the French government has urged retailers and suppliers to conclude annual price negotiations by January, two months earlier than usual. A preliminary report from the INSEE statistics office on Thursday indicated a 4.1% year-on-year rise in consumer prices in France for December, with yearly food inflation slowing to 7.1% from the previous month’s 7.7%.
France’s finance minister has previously threatened to impose special taxes on food companies to recoup what he deemed “undue” profits if they failed to pass on their lower costs to consumers grappling with high energy bills.
