From Thursday, January 4, products from the American company will no longer be sold by Carrefour. The price increase proposed by the American industrial company is unacceptable to this French retail chain.
There is a dispute between Carrefour and PepsiCo. The French supermarket chain has decided to stop selling products from this American company. To inform customers, the French retailer has hung corresponding warning signs on the shelves of PepsiCo products starting Thursday. The sign reads: “Due to unacceptable price increases, we no longer sell this brand.” Given that price negotiations between industry and retail in France usually conclude by the end of January each year, Carrefour hopes to exert pressure with its approximately 5,300 stores in France, while PepsiCo demands a 7% price increase on all its products.
PepsiCo produces more than just its eponymous carbonated drinks. The company has about 15 different brands, including beverage brands Lipton, 7Up, Rockstar, Mirinda, Kas, and Mountain Dew. In terms of food, the group also sells Lay’s, Cheetos, Sunbreaks and Doritos chips, Alvalle Gazpacho cold soup, Benuts peanuts, Off the Eaten Path cookies, and Quaker cereals. In 2022, this profitable portfolio generated over $86 billion in sales for the American company. With multiple price increases and continued demand for its snacks and drinks, PepsiCo’s results for 2023 are expected to be equally good. This is not the first time PepsiCo has been blacklisted by retailers due to price increases considered excessive.
There was a precedent last year
In March 2023, the supermarket chain Système U also clashed with this American company and removed its products from the shelves. After a month of negotiations, PepsiCo finally reduced its price increase demands. These products were then re-listed on shelves under Système U brands including Hyper U, Super U, U Express, and Utile. The retailer’s effort to reduce prices and increase customers’ purchasing power during periods of inflation seems reasonable. According to the latest data published by the French statistics bureau Insee on January 4, food prices rose by 7.1% year-over-year in December 2023.
According to BFMTV, Carrefour plans to withdraw PepsiCo products not only in France but also from supermarkets and hypermarkets in Spain, Italy, and Belgium (a total of 8,300 stores). This move could further increase pressure on the manufacturer.