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A PepsiCo spokesperson told the Post that the company “has been in discussions with Carrefour for many months and remains committed to ensuring the availability of our products.”
Carrefour’s move comes as European countries continue to battle soaring food prices. In France, food prices rose more than 7% year-on-year in December. According to one estimate, price increases peaked in March 2023, rising by about 16%.
U.S. retailers are also battling with suppliers to lower food prices. Randall Sargent, partner in retail and consumer goods at marketing consulting firm Oliver Wyman, said some stores will put brands in the “penalty box” to apply pressure.
It may result in unfavorable shelf placement, less advertising, or higher prices, which may make the product less attractive to consumers than other brands. She said it could be “inferior.”
But more aggressive tactics, such as withdrawing all products, are not uncommon in Europe, Sargent said. Grocery stores in the region are small and have discreet shelves, and European consumers are already increasingly buying the stores’ own private labels.
“Consumers are still very loyal to certain national brands, but when they are taken off the shelf, they are less confused because they are already used to comparable private brands in many categories. Because they’re willing to make the transition,” Sargent said. He said.
What Carrefour expects According to the strategic plan announced for 2022, the company aims to grow its private brands. The company aims to increase the proportion of private brands in food sales to 40% in 2026, up from 33% in 2022.
PepsiCo’s European operations account for about 14% of its global revenue, or about $9 billion, according to a report in the Wall Street Journal. Given Carrefour’s size and scope in the region, losing its in-store presence “will definitely have a negative impact on our suppliers’ business in Europe, if not globally,” Sargent said.
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