Carrefour has paused the sale of PepsiCo products across France, Spain, Italy, and Belgium amid a broader strategic move related to stock availability and pricing disputes. The decision comes as retailers seek leverage in a market shaped by persistent inflation pressures over the past two years and a push to manage costs more aggressively within competitive aisles.
A Carrefour spokesperson told EFE that the action taken on Thursday was a temporary halt on PepsiCo items, including well-known brands such as Pepsi, 7Up, Lipton, Lay’s, Bénénuts, Doritos, and Alvalle, specifically when these products are out of stock. Customers are informed with a notice at the shelf to reflect this policy.
In the notice beside each affected product, the message is explicit: “We no longer sell this product due to unacceptable price increases.”
RTL reports that PepsiCo sought a roughly 7 percent price increase during negotiations between the two parties.
The France-based talks, which were originally expected to wrap up between January 15 and 31 and were later extended to March 1, have faced delays tied to policy changes by the French government intended to speed up action on raw material price movements.
To date, the discussions have not concluded. Dominique Schelcher, president of Système U, another major French distribution group, has noted the ongoing deadlock. Some manufacturers have entered negotiations while others, including Danone, have not yet begun formal talks.
There are reports that Système U is considering a boycott approach similar to Carrefour’s, a stance that has drawn attention from the Leclerc group, which operates a cluster of hypermarkets in Spain and is watching developments closely.
Michel-Édouard Leclerc spoke on France Info this Thursday about the scale of price requests from manufacturers, describing ranges from 6 percent to 10 percent and in some cases up to 20 percent as the industry seeks relief amid broader deflationary aims on other items. He cautioned that suspending product sales is not without consequences for retailers, noting that if prices remain high, consumers may switch to competing brands or retailers that offer better value.
Inflation in France finished 2023 at 3.7 percent, a slight rise from the pace observed in November. While food prices are not at their spring peak, they remain elevated and show a steady recovery toward year-end, with an annual increase around 7.1 percent (7.7 percent in November). Fresh produce prices rose more sharply, with December showing an 8.8 percent year-over-year increase (8.6 percent in the prior month).
Market observers note that the current stalemate reflects broader tensions between retailers and manufacturers as each side negotiates safety nets, margins, and supply commitments in a climate of volatile input costs. The evolving situation underscores how retail strategies in Europe are increasingly tied to price governance, consumer expectations, and the ability to adapt rapidly to shifts in supply. Analysts suggest that continued dialogue, coupled with flexible promotional tactics and stock management, will be essential for both sides as they navigate a landscape where inflationary pressures remain a defining factor for pricing decisions and consumer choice.