French retail giant Carrefour SA CRRFY reportedly will cease selling products from PepsiCo Inc PEP, such as Pepsi, Lay's crisps, and 7up, citing excessive price increases.
Starting Thursday, Carrefour stores in France will display notices informing customers of the discontinuation of PepsiCo products due to their "unacceptable price increases," reported Reuters.
This move comes amid PepsiCo's October statement about planned modest price hikes for the year due to sustained demand.
The dispute reflects a broader trend where retailers in various countries, including Germany and Belgium, have halted orders from consumer goods companies in response to price increases, as per the report.
It remains unclear if existing PepsiCo products on Carrefour shelves will be removed.
Carrefour, known for actively challenging price increases by major consumer product companies, previously initiated a "shrinkflation" campaign, warning customers about products that reduced in size but saw price hikes.
The retailer's latest move exclusively affects its stores in France, further added the report.
In an attempt to curb inflation, the French government has urged retailers and suppliers to conclude annual price negotiations by January, two months ahead of the usual schedule.
Reuters report cited recent data from the INSEE statistics office, showing a 4.1% year-on-year rise in consumer prices in December in France, with food inflation slightly declining.
Price Action: CRRFY shares closed lower by 1.08% at $3.66 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
