Carrefour Halts Sales of PepsiCo Products in Europe Over Price Disputes
Carrefour, one of the largest supermarket chains in Europe, has taken a significant stand against PepsiCo's recent price hikes by discontinuing the sale of its products in four key European markets. From Thursday, Carrefour stores in France, Italy, Spain, and Belgium will no longer stock popular PepsiCo brands such as Pepsi, Lay's crisps, and 7Up, citing "unacceptable price increases."
This bold move affects over 9,000 Carrefour stores, representing a substantial portion of the retailer's total global presence. The decision highlights the growing tensions between retailers and major food manufacturers amid escalating inflation.
In several Carrefour locations, including a store in Paris, products like Cheetos and 7Up were already missing, while Pepsi was still available, accompanied by notices explaining the discontinuation due to price issues. Customers largely supported Carrefour's stance, expressing little surprise at the measure and noting the increasing unaffordability of many products.
PepsiCo, in response to the situation, stated its commitment to ongoing discussions with Carrefour, emphasizing efforts to ensure product availability. The company, which had previously announced plans for modest price increases in 2023, did not directly comment on Carrefour's action.
Carrefour's strategy has been notably aggressive in addressing price disputes with suppliers. The company previously launched a "shrinkflation" campaign, highlighting products that had reduced in size but increased in price. This proactive approach aligns with the French government's efforts to curb inflation by concluding annual price negotiations between retailers and suppliers earlier than usual.
In France, where retail regulations are particularly stringent, supermarkets negotiate prices with food and drink producers once a year, aiming to protect the domestic agricultural sector. The last negotiation round locked in high price increases, impacting supermarket turnover and prompting retailers to push for price reductions.
Industry experts note the tough stance French supermarkets are willing to take, including delisting products, to secure favorable deals. While such measures are seen as a last resort, the current standoff between Carrefour and PepsiCo underscores the challenges faced by retailers and suppliers in balancing consumer demands, inflation, and profitability in a turbulent economic landscape.