French supermarket chain Carrefour wants to stop selling PepsiCo products in Spain too. In France, Carrefour decided to do so earlier. Now it is also Spain’s turn, because the chain considers the price increases of the products excessively high.
After France, Carrefour will also stop selling products from multinational PepsiCo in Spain. The brand’s food products are still in shops now, but are unlikely to be restocked. In fact, well-known soft drink brands like Pepsi, 7UP aa well as Lays and Doritos crisps are already almost unavailable there online.
In its French shops, Carrefour says it will no longer sell these brands “because of unacceptable price increases”. A similar announcement will also be published in the chain’s Spanish supermarkets. Press agency Reuters reports that Italy, Belgium and other countries where Carrefour sells PepsiCo products will also adopt the measures.
Carrefour’s decision follows an open conflict between producers and distributors since the inflation crisis triggered by the war in Ukraine. For months, both sides have been pointing accusing fingers at each other. They blame each other for the huge price hikes of which the customer suffers as groceries become more and more expensive.
Planned price increase PepsiCo
In the specific case of PepsiCo, a ‘modest’ price increase was planned for 2024, on top of the previous increases it had already implemented in 2023. Carrefour’s decision to stop selling PepsiCo products does not fall in January by chance. It is the period when supermarkets renegotiate contracts with suppliers.
Despite extensive negotiations, Carrefour and PepsiCo failed to reach an agreement. The supermarket chain subsequently decided to sever trading relations. First in France and now in other countries. PepsiCo says it remains in good faith talks with Carrefour to reach a deal. The multinational wants to do all it can to ensure that its branded products remain available in Carrefour’s Spanish shops.
Boost for private brands
However, supermarket chains have also benefited from the situation. While the prices of A-brands rose sharply, private brands also gradually increased in price. Spain, meanwhile, is the country where most private brands are sold. If the veto on PepsiCo products passes, there will be more space for private label in Carrefour’s Spanish shops. Currently, the share of private brands sold by the chain is around 40%. Therefore, the French chain still has plenty of room to grow in this area. At supermarket chains such as Mercadona, Lidl or Aldi, this share is above 70%.