Since Thursday, January 4th, products marketed by the American corporation are no longer sold by Carrefour. The price increases set by the American industrial company are unacceptable to the French retail chain.
There is a dispute between Carrefour and PepsiCo. The French supermarket chain has decided to stop selling products from the American corporation. To inform its customers, the French retailer has hung corresponding signs on its shelves since Thursday in place of the products that belong to PepsiCo. The signs read: “We no longer sell this brand due to an unacceptable price increase.” Since the annual price negotiations typical in France between industry and retail must be completed by the end of January, Carrefour wants to exert pressure on the American company with its approximately 5,300 stores in France alone in this way. PepsiCo is demanding a 7% price increase for all its products.
The PepsiCo corporation produces far more than just the eponymous carbonated beverage. The company owns about 15 different brands. These include the drinks Lipton, 7Up, Rockstar, Mirinda, Kas, and Mountain Dew. In foods, the group also markets Lay’s, Cheetos, Sunbreaks, and Doritos chips, Alvalle Gazpacho, Benuts peanuts, Off the Eaten Path cookies, and Quaker cereals. This profitable mix brought the American corporation revenues of over 86 billion USD in 2022. With numerous price increases and the ongoing demand for their snacks and drinks, PepsiCo’s results for 2023 are likely to be similarly strong. This is not the first time PepsiCo has been blacklisted by a retailer due to what are considered excessive price hikes.
Already a precedent last year
In March 2023, the supermarket chain Système U had also clashed with the American corporation and delisted its products. After month-long negotiations, PepsiCo finally lowered its demands. The products were reintroduced to the shelves of Système U, which includes the brands Hyper U, Super U, U Express, and Utile. The battle by retailers to lower prices and provide their customers with greater purchasing power seems quite legitimate in times of inflation. According to the latest figures from the French statistical office Insee, published on January 4th, food prices rose by 7.1% in December 2023 compared to December 2022.
According to broadcaster BFMTV, Carrefour plans to remove PepsiCo products from the shelves of its hypermarkets and supermarkets not only in France but also in Spain, Italy, and Belgium (a total of 8,300 stores). This could further increase pressure on the manufacturers.