Annual supplier-retailer negotiations in France are showing little sign of improvement as pricing disputes continue to dominate discussions across the grocery and food retail sector.
According to a recent assessment by Pact’Alim, which represents small and mid-sized food manufacturers, talks for 2026 commercial agreements remain slow and difficult, despite commitments made by retailers and suppliers to improve dialogue and conclude contracts earlier in the process.
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The negotiations, which determine purchasing prices and trading terms for the year ahead, are a critical moment for the French retail supply chain.
This year, however, many suppliers report that the gap between retailer demands and supplier cost realities remains wide, raising concerns about margins, compliance with food law requirements and the longer-term stability of supply.
Negotiations remain slow despite agreed framework
In late 2025, major retail groups and food industry representatives signed a joint charter aimed at improving the conduct of annual commercial negotiations.
The framework was intended to limit repeated negotiation rounds, encourage more constructive exchanges and ensure that a significant share of contracts would be finalised by mid-January.
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By GlobalDataPact’Alim’s latest findings suggest that these objectives have largely not been met. A majority of member companies report that discussions have made little progress since the start of negotiations in December.
Many suppliers say they are still facing requests for price reductions, even as production, energy and labour costs remain elevated. As a result, only a minority of small and medium-sized suppliers have secured signed agreements at this stage of the process.
Pricing pressures challenge retail supply chains
The current deadlock highlights the ongoing tension between retailers seeking to limit shelf-price increases and suppliers aiming to protect already tight margins.
Suppliers represented by Pact’Alim indicate that modest price rises are needed to offset cost inflation, while retailers continue to prioritise price competitiveness for consumers.
This imbalance is creating uncertainty across the retail supply chain. Delayed agreements make it harder for suppliers to plan production and manage cash flow, while retailers face reduced visibility on future pricing structures.
Industry observers warn that prolonged negotiations could eventually affect product availability or lead to uneven pricing outcomes once agreements are finally concluded.
Regulatory concerns and the Egalim framework
The stalled talks also raise questions about compliance with France’s Egalim laws, which are designed to protect agricultural raw material prices and ensure fairer value distribution across the food chain.
Pact’Alim argues that continued pressure on supplier prices risks undermining the spirit of these regulations, particularly for smaller manufacturers with limited bargaining power.
With the legal deadline for concluding annual negotiations approaching in early March, industry groups are calling for renewed engagement from both retailers and suppliers.
Regulators and government bodies are also expected to monitor the situation closely, as the outcome of the 2026 negotiations will play a key role in shaping retail pricing, supplier sustainability and market balance in the year ahead.
