Carrefour is informing consumers in four European countries that it will stop selling products like Pepsi, 7up, and Lay's crisps because the prices have gone too high. This is part of the ongoing price war between retailers and international food corporations.
According to a representative for the big French supermarket chain, starting on Thursday, PepsiCo product shelves at Carrefour stores in Italy, Spain, France, and Belgium will display signs stating that the store will stop offering the brands because of unconscionable price hikes.
As per its 2022 yearly report, Carrefour's global footprint comprises 14,348 stores, of which two-thirds are affected by the move, which covers over 9,000 stores in the four countries.
Similar order cancellations from consumer goods companies have been made by grocery retailers in a number of nations, including Germany and Belgium. This is a tactic used in price negotiations, which have become more sensitive as a result of inflation.
PepsiCo responded in a statement that they have been in communication with Carrefour for many months, and they will keep doing so in a sincere effort to make sure that their products are available.
In a Carrefour store in the upscale 16th district of Paris on Thursday, some PepsiCo products like 7Up and Cheetos were unavailable, but other products like Pepsi were still on the shelves, right next to the notice.
The majority of the supermarket patrons applauded the decision.
Customer Edith Carpentier said that she is not surprised at all. In her opinion, many items that were too costly will likely stay on the shelves because customers can choose not to purchase them.
Inquiry for a comment from PepsiCo was not answered.
The American business raised its profit projection for 2023 for the third time in October, stating that it intended to implement "modest" price hikes this year as demand remained strong despite increases.
Carrefour is among the most active retailers that have been challenging large consumer products and food businesses over pricing.
It began putting warnings on items that have decreased in size but increased in price last year as part of a "shrinkflation" campaign.
Stores and suppliers have been asked by the French government to conclude annual price talks in January, two months ahead of the usual schedule, in an attempt to reduce inflation.
France is unique among European nations in that it heavily regulates the retail industry, requiring supermarkets to bargain with food and drink suppliers only once every year in an effort to safeguard its agricultural sector.
However, at the peak of this inflation crisis, during the previous round of negotiations early in the year, extremely high price increases were locked in. This negatively impacted supermarket turnover and encouraged them to negotiate price reductions this time around.
As per James Walton, the chief economist of the Institute of Grocery Distribution, the French supermarkets are known to be extremely willing to de-list people when they are unhappy with the deals they get. That is, of course, a last resort since nobody benefits when desired goods are unavailable to buy.