French Retailer Carrefour Stops Selling PepsiCo Over Prices

One of the world’s leading supermarket chains, Carrefour, is taking a firm stand against the rising costs of living and rampant inflation. In a bold move, the French retailer has decided to cease selling PepsiCo products, namely Pepsi and 7UP, condemning their continual and “unacceptable” price increases.

Carrefour has an impressive reach with over 12,000 outlets across the globe, but this decision is exclusive to its French stores for now. Customers strolling down aisles where PepsiCo beverages once sat will come face to face with notes announcing the brand’s discontinuation due to its unwarranted price increases.

There’s a bit of ambiguity as to what will happen to PepsiCo items that are already shelved. A spokesperson noted that “it is unclear whether Carrefour will remove PepsiCo products already on shelves or if customers will still be able to buy items currently on display.”

PepsiCo, known for popular brands like Mountain Dew and Gatorade, has had a habit of escalating the prices of its food and beverages. The company justifies this by pointing to the need to balance out inflationary pressures. This strategy has undoubtedly padded its revenue, so much so that it elevated its profit forecast three times for 2023.

However, the beverage giant seems to have realized that this approach might not always work in its favor. Concerns are rising that continual price spikes could deter cost-conscious customers. Hence, PepsiCo has indicated a shift in strategy with plans for only “moderate” price increases in 2024.

Europe has been grappling with soaring inflation, leading to a strained relationship between supermarket chains and major consumer brands. Carrefour’s move to stop selling PepsiCo products isn’t its first attempt at pushing back against inflationary practices. Previously, it placed warning labels on certain products indicating “shrinkflation” — a sneaky practice where product sizes shrink while their prices remain the same or even increase.

These warnings targeted a variety of items, from Lindt chocolates to Lipton iced tea. By adopting such measures, Carrefour aimed to exert pressure on suppliers, including industry heavyweights like Nestle, PepsiCo, and Unilever, to cut down their prices.

Carrefour’s bold stance could be the first of many tremors in the retail world, as they challenge big brand names over their pricing strategies during a global cost-of-living crisis. Only time will tell if this move will bring about the desired change or if consumers will have to adjust to a new norm.