Carrefour, one of the largest supermarket chains worldwide, is shaking up the shelves in its European stores by removing popular PepsiCo products. The move comes as Carrefour takes a stand against what it perceives as inflated prices set by food manufacturers.
Among the products being removed from Carrefour’s shelves are beloved snack items like Doritos and Lays chips, as well as popular beverages such as Pepsi and 7-Up soda, and even Quaker foods. Lipton tea is also on the list of products being pulled.
The supermarket giant claims that food manufacturers are deliberately keeping prices high, even though the costs of raw materials have been decreasing. Carrefour’s decision comes as the French government expresses concerns about rising food inflation and vows to push for reduced prices.
This is not the first time Carrefour has taken action against suppliers over pricing. In the past, the company resorted to labeling certain products with “shrinkflation” labels, which indicated reduced package sizes and higher prices. The tactic was an attempt to shame suppliers into reconsidering their pricing strategies.
PepsiCo, on the other hand, has been in discussions with Carrefour for months about the situation. The beverage and snack giant is determined to ensure that its products remain available to consumers. PepsiCo CEO, Ramon Laguarta, warns that prices may continue to stay elevated until 2024, citing higher inflation in the industry.
Despite PepsiCo’s third-quarter earnings surpassing expectations and a revenue growth driven entirely by price increases, the company’s shares have experienced a decline of about 3% over the past year. This is in stark contrast to the S&P 500 index, which has enjoyed a 23% gain during the same period.
Carrefour’s decision to remove PepsiCo products from its shelves shines a spotlight on the ongoing battle between retailers and suppliers over pricing. As the French government continues to push for reduced prices, it remains to be seen how other supermarket chains and food manufacturers will respond.
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