In a bold move, French retail powerhouse Carrefour SACRRFY has reportedly decided to discontinue selling products from PepsiCo IncPEP, including popular items like Pepsi, Lay’s crisps, and 7up, citing unwarranted price hikes.
Starting Thursday, Carrefour stores across France will prominently display notices informing consumers of the termination of PepsiCo products due to their “unacceptable price increases,” as reported by Reuters.
This move comes in the wake of PepsiCo’s announcement in October about planned incremental price increases due to sustained demand.
The brewing conflict reflects a wider trend where retailers in various countries, such as Germany and Belgium, have halted orders from consumer goods companies in response to escalating prices, as per the report.
The fate of existing PepsiCo products on Carrefour shelves remains uncertain.
Known for actively resisting price increases by major consumer product companies, Carrefour previously launched a “shrinkflation” campaign, cautioning customers about products that shrank in size but saw price hikes.
The latest move by the retailer exclusively impacts its establishments in France, further noted the report.
In an effort to combat inflation, the French government has exhorted retailers and suppliers to wrap up annual price negotiations by January, two months ahead of the usual schedule.
The Reuters report referenced recent data from the INSEE statistics office, exhibiting a 4.1% year-on-year increase in consumer prices in France in December, with slight moderation in food inflation.
Price Action: CRRFY shares concluded lower by 1.08% at $3.66 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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