Global supermarket chain Carrefour is selling PepsiCo products in its stores in France, Belgium, Spain and Italy, citing price hikes on popular products such as Doritos, Lay’s potato chips, Quaker Oats, Lipton tea and its namesake soda. cancel.
The French grocery chain announced Thursday that it has removed PepsiCo products from its shelves in France and placed small signs in its stores that read, “Due to unacceptable price increases, this brand will no longer be sold.”
The ban will be extended to Belgium, Spain and Italy, but Carrefour, which has 12,225 stores in more than 30 countries, did not say when it would come into effect in those three countries.
“We have been in discussions with Carrefour for many months and continue to work in good faith to ensure the availability of our products,” PepsiCo said in a statement.
The company, which makes Cheetos, Mountain Dew and Rice-A-Roni, has raised prices by double-digit percentages for seven consecutive quarters, most recently by 11% from July to September.
Profits are up, but soaring prices are hurting sales as people shop for cheaper stores.PepsiCo also says that’s the case. Reduced package size Meet consumer demand for convenience and portion control.
Many food producers have chosen to reduce packaging while charging the same fees. A strategy known as “shrinkflation” — after supply chain shocks related to COVID-19 affected many parts of the food chain, leading to higher prices for everything from berries to corn.
Still, some of the world’s largest retailers Soaring inflation rate As an excuse for raising prices, rake in billions of dollars With additional profit. In late 2021, the F.T.C. started an investigation It’s hurting profit margins at major retailers and consumer goods companies, including Amazon, Kroger, Walmart, Kraft Heinz and Procter & Gamble.
Purchase, New York-based PepsiCo said price increases should be moderate and roughly in line with inflation. Inflation has fallen sharply globally since the coronavirus pandemic strained supply chains and then Russia’s war in Ukraine sent prices soaring.
But consumer prices in the 20 European Union countries that use the euro currency rose to 2.9% year-on-year in December, rebounding after seven straight months of declines, according to figures released on Friday. .
Food and non-alcoholic drink prices in the 20 euro zone countries were still up 6.9% year-on-year in November, although this was down from a pitiful 17.5% in March.
PepsiCo points to rising costs of grain and cooking oil as the cause of the price increase.These costs have skyrocketed to Russia’s invasion of Ukraine It’s a feeling that families still feel at supermarkets today. However, the prices of food products such as grains traded on the world market fell significantly last year from their record highs set for 2022.
The Food and Agriculture Organization of the United Nations announced on Friday that the food price index for 2023 fell by 13.7% year-on-year, with only the sugar price index increasing during that time.