France's E. Leclerc Still Selling Pepsi as Rival Carrefour Dumps Products Over Price Dispute

The head of France's largest supermarket chain, E. Leclerc, announced that the company would continue selling Pepsi products after rival Carrefour decided to remove PepsiCo items from their shelves. This move marks the latest pricing clash between retailers and global food giants.

Reuters reported that Michel Edouard Leclerc expressed optimism regarding food inflation in France, expecting it to return to a range of 2.5% to 3% this year.

Persistence in Negotiations

Leclerc addressed the ongoing price negotiations with suppliers, which are set to conclude on January 31, as per Market Screener. He revealed that he had requested price reductions from French food giant Danone, aiming for them to take effect in February-March. Noting that decisions for the year are currently being made, Leclerc emphasized the importance of seeking advantageous terms for consumers.

As Leclerc stated his ambition to be the most affordable retailer in France, he expressed his intention to approach Danone regarding deflation, albeit without specifying a figure. With a focus on providing high-quality products at reasonable prices, Leclerc aimed to demonstrate that lower prices could increase suppliers' revenue.

France's Pricing Debate

The debate over staple prices has permeated France, with retailers arguing that price increases imposed by producers are unwarranted. In response, the government has mandated an earlier conclusion to annual price negotiations between retailers and suppliers, seeking to mitigate inflation.

When asked if E. Leclerc would follow Carrefour's lead and remove Pepsico or other products due to high prices, Leclerc responded, "I continue to sell Pepsi." He remained confident that emphasizing the potential for increased revenue with lower prices would prove more compelling than a display of strength.

Last week, Carrefour announced that its stores in France, Belgium, Italy, Spain, and Poland would no longer stock Pepsi, Lay's Crisps, Cheetos, and 7up due to what it referred to as "unacceptable price hikes."

Photo: Olena Bohovyk/Unsplash