French supermarket chain Carrefour has ceased the sale of PepsiCo products at its stores in four EU countries over price hikes.
The decision affects more than 9,000 Carrefour stores, which represents a significant portion of the company’s global footprint of 14,348 stores, as per its 2022 annual report.
PepsiCo’s products such as Pepsi, Cheetos, Lay’s, and Doritos will no longer be available in the retailer’s stores in France, Italy, Spain, and Belgium.
The retailer is claiming ‘unacceptable price increases’ from the US food and beverage conglomerate, Reuters reported, citing a spokesperson of Carrefour.
In October 2023, PepsiCo announced its plans for ‘modest’ price increases, citing sustained demand that allowed the company to raise its profit forecast for 2023 for the third consecutive time.
In response to Carrefour’s decision, PepsiCo released a statement saying: “We’ve been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Despite these ongoing talks, some PepsiCo products such as Cheetos and 7Up were already found missing from the shelves of a Carrefour store in Paris, France, indicating the immediate impact of the dispute.
The standoff between Carrefour and PepsiCo is the latest example of tensions between grocery retailers and suppliers amid rising inflation.
Last month, the Competition Authority of Kenya penalised Majid al Futtaim, the local Carrefour franchise holder, for abusing buyer power over suppliers.