Earthquake in distribution: Carrefour extends its veto to PepsiCo in Spain and other European countries

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Carrefour stops selling Pepsico products in France, Spain, Italy and Belgium when out of stock retaliation for price increases requestede in a competitive environment marked by the desire to control the inflation of the last two years.

a spokesperson Carrefour He explained to EFE that the measure implemented on Thursday was to stop the sale of Pepsico products (with brands such as). Pepsi, 7up, Lipton, Lay’s, Bénénuts, Doritos or Alvalle) when they are out of stock, they announce this to customers with a sign.

In the notification in question, next to the name of the product, message is clear: “We no longer sell this brand due to unacceptable price increase“.

According to RTL, Pepsico demanded 7 percent increase in negotiations is made between the parties.

Negotiations in France, which were supposed to end between January 15-31 instead of March 1, generally took place due to the changes made by the French Government in order to more quickly affect the price decreases in some raw materials.

But until now, they were closed, as Dominique Schelcher, president of Système U, the country’s other major distribution chain, noted. Agreements with a small number of manufacturers and with some, such as Danone, discussions have not even begun.

Actually, Système U is also considering a boycott similar to Carrefour’sThis idea also “attracts” the Leclerc chain (which has a dozen hypermarkets in Spain).

Michel-Edouard Leclerc announced this Thursday on radio station France Info that industrialists are demanding price increases of between 6 percent and 10 percent, and in some cases up to 20 percent as his company seeks “deflation”.

Again, Michel-Edouard Leclerc admitted that suspending the sale of a product is a policy that does not benefit the distribution chain because, on the one hand, “if consumers do not want to pay a lot of money, they will go to competition if they do not have your product.”

Inflation in France finished 2023 at 3.7%, an increase of two tenths compared to NovemberAnd. Although food prices are far from the 16 percent peak in the spring, they are well above these figures and are recovering by the end of the year, with an annual increase of 7.1 percent (7.7 percent in November). For fresh produce, it was up to 8.8% in December (6.6% compared to the previous month).

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