Carrefour stores in France have decided to stop stocking PepsiCo products, including popular brands like Pepsi, Lay’s, and 7Up, citing significant and unacceptable price hikes by the American multinational. The retailer highlighted the jump in cost as a reason for removing these lines from shelves, aiming to protect customers and maintain fair pricing in a challenging market.
To inform shoppers, Carrefour posted notices on shelves across its locations explaining the decision to no longer carry PepsiCo products due to the price increases. The notices emphasized that the higher prices were not acceptable and that the retailer would avoid restocking or replacing items once current stock is depleted, pending any future reconsiderations based on market conditions.
PepsiCo had signaled earlier in the year that it would implement modest price increases. The company had forecast a lift in revenue driven by pricing actions, with early indicators suggesting demand for its beverages and snacks remained robust despite pricing shifts. This dynamic is part of a broader discussion about how consumer goods pricing affects consumer choice, profitability, and the strategies retailers use to balance affordability with supplier costs.
Carrefour’s decision follows a similar move the retailer took the previous autumn, which involved communicating to the public that some manufacturers were reducing production or replacing certain consumables while simultaneously raising prices. This approach reflects a period of heightened price sensitivity among European consumers and a broader trend of retailers reassessing supplier relationships in response to evolving margins and inflation pressures, while others in the sector weigh the impact on store traffic and customer loyalty. The emphasis remains on delivering value at the shelf while navigating the supply chain challenges that affect product availability and pricing across supermarkets in France and beyond.