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FoodBev Media

5 January 2024

Carrefour pulls PepsiCo products in four EU countries – Reuters

Carrefour pulls PepsiCo products in four EU countries – Reuters

French supermarket chain Carrefour has pulled PepsiCo products in its stores in four EU countries in a row over price hikes. From yesterday (4 January), products such as Doritos, Pepsi and 7up will no longer be found on Carrefour shelves in France, Italy, Spain and Belgium. Instead, the shelves will carry signs saying that the brands are unavailable "due to unacceptable price increases", a spokesperson for the French supermarket giant told Reuters. Carrefour's move impacts over 9,000 stores across the four countries, which amounts to two-thirds of the retailer's global footprint. Other grocery retailers in several EU countries similarly stopped orders from consumer giants due to increased prices. In May last year, Belgian supermarket chain Colruyt limited its supply of Mondelez products such as Milka chocolate and Oreo biscuits, after a dispute over product prices. In a statement, PepsiCo said: "We've been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available". The food giant said in October it planned "modest" price increases this year as demand held up despite rises, leading it to hike its 2023 profit forecast. This is not the first battle Carrefour has been involved in over prices, last year, the French multinational started a ‘shrinkflation’ campaign that saw warnings placed on products that had shrunk in size but cost more. In its efforts to lower inflation, the French government has asked retailers and suppliers to finish annual price negotiations in January, two months ahead of schedule. France strongly regulates its retail sector, forcing supermarkets to negotiate prices only once a year with food and drink producers, in an attempt to protect its farm industry. "The French supermarkets, we know, are very, very ready to de-list people if they don't like the deals that they get," James Walton, chief economist at the Institute of Grocery Distribution told Reuters. "Obviously that's a last resort, because nobody wins if the goods that people want are not available on the shelves." FoodBev has approached PepsiCo for comment.

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