Carrefour has made the decision to discontinue the sale of PepsiCo products such as Pepsi, Lay’s crisps, and 7up, citing their high cost. Starting from Thursday, the shelves of Carrefour stores in France will display a note indicating that these products are no longer sold due to unacceptable price increases. This action reflects the ongoing price negotiations between retailers and global food giants, with retailers struggling against inflation and cost increases from suppliers.
PepsiCo did not provide any response to this development, and Carrefour reported that there is uncertainty regarding whether already stocked PepsiCo products will be removed. Carrefour, known for its proactive stance in challenging large consumer products companies over prices, also initiated a “shrinkflation” campaign last year, which puts warnings on products that have become smaller in size but have a higher cost.
This decision by Carrefour is part of the ongoing negotiations to ease inflation, supported by the French government, seeking to have annual price negotiations wrapped up by January. A preliminary reading from the INSEE statistics office on Thursday pointed out a 4.1 percent yearly rise in consumer prices in France in December, with food inflation slowing down to 7.1 percent from 7.7 percent the month before. In response to these developments, France’s finance minister has previously threatened to impose special taxes on food companies if they do not pass on cost savings to consumers experiencing high energy bills.