French Grocery Giant Drops PepsiCo Products Over Prices

Carrefour says prices must come down as inflation does
By Evann Gastaldo,  Newser Staff
Posted Jan 5, 2024 1:30 AM CST
Giant Supermarket Chain Drops All PepsiCo Products
A row of Pepsi products crowd a shelf at a Publix Supermarket, Monday, Feb. 8, 2021 in Miami.   (AP Photo/Marta Lavandier)

Inflation may finally be starting to ease, but prices for some items are showing no signs of coming back down—and now one of the biggest supermarket chains in the world is taking a stand. Carrefour, France's largest food retailer, which runs thousands of stores in 30 countries, has announced it will stop selling PepsiCo products in France, Italy, Spain, and Belgium because of "unacceptably" high prices, the Wall Street Journal reports. In addition to soda brands, PepsiCo products include Lay's and Doritos chips and Quaker cereals, the Guardian reports. Posters in Carrefour's French stores, on shelves where those products would normally be displayed, explain why the chain is no longer selling them, the New York Times reports.

"We've been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available," a PepsiCo spokesperson said in a statement. The company has been raising prices substantially for two years, but said in October that demand was still high despite price increases. Still, the company said price increases would slow in 2024. France strongly regulates its retail sector, and the French government has long criticized food manufacturers for continuing to increase prices. It is pushing for food retailers to draw attention to so-called "shrinkflation," in which food packages decrease in size while staying the same price—or even going up in price. Carrefour has already been doing so, and other large supermarket chains in France say they may soon take action as well. (More PepsiCo stories.)

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