European giant Carrefour BANS Pepsi Products from Sale after Shameless Price Hikes by Pepsi

In a significant development, French supermarket giant Carrefour has announced its decision to cease the sale of PepsiCo products, including popular items like carbonated soda drinks Pepsi, 7up, Mirinda, Lay’s chips, and other PepsiCo-related products. The move, as reported by Reuters, is attributed to the perceived excessive cost of these products, prompting Carrefour to take a stand against what it deems “unacceptable price increases.”

Beginning Thursday, France’s second-largest grocery chain plans to display notes on shelves previously showcasing PepsiCo goods. The notes will convey a clear message: “We are no longer selling this brand due to unacceptable price increases.” The report does not specify whether existing PepsiCo products on Carrefour’s shelves will be removed.

This decision comes in the wake of PepsiCo’s warning in October about anticipating “modest” price hikes in the new year, citing consistent demand. The US-based snacking and beverage giant has incrementally raised prices for seven consecutive quarters, with a double-digit hike reported in the July-September period of the previous year. PepsiCo also adopted a strategy of reducing package sizes for certain products, claiming it was to align with consumer preferences for convenience and portion control.

Last year, grappling with surging consumer inflation, grocery retailers across several EU countries confronted global food industry giants regarding pricing issues. Carrefour, in particular, initiated a “shrinkflation” campaign in September, labeling products that had decreased in size while their prices rose.

Ongoing negotiations in France between food manufacturers and retailers focus on the latter’s demand for price reductions, citing decreases in raw material and energy costs. On the other hand, representatives of the food industry argue that production costs remain elevated, with manufacturers absorbing a significant portion of the inflationary shocks.

As the largest supermarket chain in Europe, Carrefour’s decision to halt the sale of PepsiCo products is expected to have a substantial impact on the beverage and snack giant’s market presence.