Carrefour will stop selling American brand Pepsico products in the four countries where it operates, including Pepsi and 7Up soft drinks and Lay's potatoes, Doritos and Cheetos, due to the “unacceptable price increase.” The supermarket chain has made its customers aware of the measure through posters on shelves in France and plans to do the same in Spain, Italy and Belgium.
Food prices have skyrocketed in the last two years and price negotiations between major manufacturers and retailers are becoming increasingly tense. Several supermarkets have stopped ordering some branded products because they are too expensive. In the latest tug-of-war among themselves, Carrefour has decided that the Pepsico group is raising increases beyond what is acceptable and has resigned.
The measure was reported this Thursday by French media, while a spokesman for Carrefour in France told the Portal agency that the withdrawal of these products would affect all the countries in which it is present: France, Spain, Italy and Belgium. In Spain, the company made no further comments.
Pepsico said in October that it was preparing a “modest price increase” in 2023 after the increase in 2022, and raised its profit forecasts for the third time this year. Meanwhile, retailers insist their margins have fallen significantly because they haven't passed on all price increases from their suppliers to shelves.
Carrefour has been one of the most active retailers in challenging the big brands on price. Last year, the company launched a campaign against so-called discounting, placing warnings on downsized but more expensive products.
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