France: One of France’s biggest supermarket chains is refusing to sell PepsiCo products because its products have become too expensive to stock.
The change will affect Carrefour’s network of over 9,000 stores in France, Spain, Italy, and Belgium, according to a company spokesperson, as per the statement.
The chain claimed to have put up signs in-store attributing the change to “unacceptable price increases.”
This is the most recent high-profile dispute between large grocery producers and European supermarket chains since the crisis caused by rising living expenses following Russia’s war with Ukraine.
Producers were forced to raise their prices due to rising wholesale costs for energy and many other commodities; this frequently led to what is known as “shrinkflation” as an attempt to contain the increases.
Carrefour posted notices to alert consumers if an item’s size was reduced, but its price increased last year.
Suppliers to supermarkets in the United Kingdom are still being investigated by the Competition and Markets Authority.
France is experiencing a higher rate of grocery inflation than the UK, as per the report. Through negotiations with brands, the government has made multiple attempts across the channel to slow the rate of grocery inflation, but with little success.
We’re hoping to wrap up these discussions by the end of the month. The decision made by Carrefour affects not only the Pepsi name brand of soft drinks but also brands like 7up, Cheetos, and Lay’s crisps.
The US company issued a warning to consumers last year, stating that “modest” price increases were anticipated in 2024.
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