Carrefour Takes Stand Against PepsiCo’s Price Hikes in France

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In a bold move, the global supermarket giant Carrefour has ceased the sale of PepsiCo products in its French stores due to what it deems “unacceptable price increases.” Lay’s potato chips, Quaker Oats, Lipton tea, and Pepsi soda are among the popular items affected by this decision. Small signs displayed in stores convey the message, “We no longer sell this brand.”

Ban Extends to Belgium, Spain, and Italy – Implementation Uncertain

The ripple effect of Carrefour’s decision will not be limited to France, as the ban on PepsiCo products is expected to extend to Belgium, Spain, and Italy. However, the exact timeline for the implementation of this ban in the latter three countries, where Carrefour has a substantial presence with over 12,000 stores, remains undisclosed.

PepsiCo Responds Amidst Continuous Price Hikes

PepsiCo, the company responsible for brands like Cheetos, Mountain Dew, and Rice-A-Roni, has been subject to a series of price hikes, marking a double-digit percentage increase for seven consecutive quarters. Despite soaring profits, the company acknowledges a decline in sales due to higher prices, prompting adjustments such as downsizing product packaging to cater to consumer demands for convenience and portion control.

PepsiCo Foresees Price Easing Despite Global Inflation

PepsiCo remains optimistic about the future, anticipating a moderation in price increases that align with the worldwide decrease in inflation. The company attributes its recent price hikes to rising costs for grain and cooking oil, influenced by geopolitical events such as Russia’s invasion of Ukraine. However, global food commodity prices, including grain, have experienced a notable decline from the record highs of 2022.

European Union Consumer Prices and UN Food Index

Consumer prices in the 20 European Union countries using the euro currency saw a rebound to 2.9% in December 2023 from a year earlier, ending seven consecutive monthly declines. While food and non-alcoholic drink prices in the euro area eased from the peak of 17.5% in March, they remained elevated at 6.9% in November compared to the previous year. Despite higher costs for certain commodities, the UN Food and Agriculture Organisation reported a 13.7% decrease in its food price index for 2023, signaling a mixed global scenario in food pricing.

SOURCE: Ref Image from Reuters

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