Carrefour has stopped selling Pepsico group products, such as Pepsi and 7up drinks or Lay’s crisps, in its supermarkets in France after stating that it results in “unacceptable increases” in their prices, according to Reuters. The measure will be repeated in its centers in Spain, Italy and Belgium.
“We no longer sell this brand due to an unacceptable price increase. We apologize for the inconvenience caused,” reads the posters that have been hanging since this Thursday on the shelves from which Pepsico products have been removed. The same notice can be found on Pepsi and 7up drinks; Lay’s potatoes; Lipton iced teas or Cheetos and Benenuts snacks, all of the group. In the case of Spain, it would also affect Alvalle products.
Carrefour has been one of the most active chains in questioning the prices of large suppliers. Last year he already pointed out to those brands that practiced reduction, reducing the size of the product without changing its price, which translates into an increase.
The decision is a new tug-of-war over pricing between retailers and global food giants. In the midst of high inflation, in France the State has come to intervene, forcing prices to be renegotiated or threatening food companies with special taxes. Pepsico said in October that it planned “modest” price increases for the year, noting that demand has not suffered despite previous increases, which has already allowed it to raise its profit forecast three times. According to RTL, Pepsico demands increases of 7% in the negotiations that are being carried out between the parties, which have already dragged on for months and must be closed before the end of January.
The posters appear both on shelves without the product and on others where it is still sold. When the products that it now has for sale are sold out, they will not be restocked once they are sold out, pointing out that it cannot prevent customers from buying those that are already on display.
France is not the only battlefield. During 2023, supermarkets in Germany or Belgium announced that they would suspend orders due to price increases, a tactic in price negotiations that have become more tense due to inflation.
Supermarket chains have argued that their profit margins are very small, leaving them no choice but to pass on price increases from suppliers to consumers. Meanwhile, big food companies have sought to boost sales with price increases as volumes stagnate.
