Carrefour to Stop Selling PepsiCo Products in Several European Countries
Carrefour, a global supermarket chain, has announced that it will no longer sell PepsiCo products in its stores in France, Belgium, Spain, and Italy. The decision comes in response to price increases for popular items such as Lay’s potato chips, Quaker Oats, Lipton tea, and Pepsi itself.
A Stand Against Unacceptable Price Increases
In France, Carrefour has already removed PepsiCo products from its shelves and placed signs in stores stating, “We no longer sell this brand due to unacceptable price increases.” The ban will also extend to Belgium, Spain, and Italy, although the company has not specified when it will take effect in these countries.
PepsiCo has responded by stating that it has been in discussions with Carrefour for several months and will continue to engage in good faith to ensure the availability of its products.
PepsiCo’s Rising Prices and Consumer Behavior
PepsiCo, known for brands like Cheetos, Mountain Dew, and Rice-A-Roni, has been raising prices for seven consecutive quarters. In the most recent period (July to September), prices increased by 11%. While the company’s profits have risen, higher prices have led to a decline in sales as consumers opt for cheaper alternatives.
PepsiCo has also acknowledged that it has been reducing package sizes to meet consumer demand for convenience and portion control.
PepsiCo’s Chief Financial Officer, Hugh Johnston, stated in October that consumers are becoming more selective in their purchasing decisions.
The Impact of Inflation and Rising Costs
PepsiCo has attributed its price increases to higher costs for grain and cooking oil. These costs surged following Russia’s invasion of Ukraine and continue to affect families at supermarkets. However, global food commodity prices, including grain, fell considerably in 2023 from record highs in 2022, according to the U.N. Food and Agriculture Organization.
In December, consumer prices in the 20 European Union countries that use the euro currency rose by 2.9% compared to the previous year, rebounding after seven consecutive monthly declines. While prices for food and non-alcoholic drinks have eased from a peak of 17.5% in March, they were still 6.9% higher in November compared to the previous year.
PepsiCo expects that price increases will align with inflation and ease in the future.
Carrefour Takes a Stand
Carrefour’s decision to stop selling PepsiCo products is a clear message against what it considers unacceptable price increases. The supermarket chain has taken a stand to prioritize affordable options for its customers.
While PepsiCo and Carrefour continue their discussions, consumers will have to look for alternative brands or visit different stores to purchase their favorite PepsiCo products in the affected countries.
Carrefour’s move reflects the growing tension between retailers and suppliers as they navigate rising costs, inflation, and changing consumer behavior. It remains to be seen how this decision will impact both companies and the broader retail industry.
