France's Carrefour drops pricy Pepsi products
Carrefour is telling customers in four European countries it will no longer sell products, such as Pepsi, Lay's crisps and 7up because they have become too costly, in the latest tug-of-war over prices between retailers and global food giants. From Thursday, shelves for PepsiCo products at Carrefour stores in France, Italy, Spain and Belgium will carry signs saying the store will no longer be stocking the brands "due to unacceptable price increases", a spokesperson for the French supermarket giant said. Carrefour's move affects more than 9,000 stores across the four countries, amounting to two-thirds of the retailer's global footprint of 14,348 stores according to its 2022 annual report. Grocery retailers in several countries including Germany and Belgium have similarly stopped orders from consumer goods firms, a tactic in price negotiations that have become more fraught due to inflation. "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," PepsiCo said in a statement. Some PepsiCo products, such as Cheetos and 7Up were not available at a Carrefour supermarket in Paris' posh 16th district on Thursday, while others, including Pepsi, were still on the shelves, next to the sign. Customers in the supermarket broadly cheered the move. "It doesn't surprise me at all," shopper Edith Carpentier said. "I think there will be lots of products left on the shelves because they have become too expensive, and they are all things we can avoid buying." The US company said in October it planned "modest" price increases this year as demand held up despite rises, leading it to hike its 2023 profit forecast for a third straight time. (Reuters)