Carrefour, a major French retailer, has informed customers that it will no longer sell PepsiCo products, including popular items like Pepsi, Lay’s crisps, and 7up. The decision stems from concerns about the increasing costs of these goods, highlighting an ongoing struggle over pricing between retailers and global food giants. Beginning Thursday, Carrefour’s shelves in France will feature a note accompanying PepsiCo products, stating, “We are no longer selling this brand due to unacceptable price increases.” This move comes as part of a wider trend where grocery retailers in various countries, including Germany and Belgium, have ceased orders from consumer goods firms due to rising prices, a tactic in negotiations exacerbated by inflation.
PepsiCo had previously announced plans for “modest” price hikes in response to sustained demand despite increases, leading to a positive adjustment in its 2023 profit forecast. Carrefour’s decision underscores the intensifying challenges in negotiations between retailers and food companies.
It remains unclear whether already-stocked PepsiCo products will be removed from Carrefour shelves. The company’s proactive stance on pricing issues aligns with its previous initiatives, such as the “shrinkflation” campaign, which involved labeling products that decreased in size while costing more. While there is uncertainty about the current status of this campaign, Carrefour’s commitment to challenging consumer goods and food companies on pricing remains evident.
The French government’s push to conclude annual price negotiations in January, two months earlier than usual, reflects broader efforts to address inflation. As consumer prices in France rose by 4.1% year-on-year in December, the government is actively seeking to ensure that cost adjustments are passed on to consumers. France’s finance minister has even hinted at imposing special taxes on food companies if they fail to share the benefits of lower costs with consumers facing challenges such as high energy bills. Carrefour’s decision not to sell PepsiCo products reflects the complex landscape of pricing negotiations amid economic uncertainties.