In the run-up to negotiations with Nestle, PepsiCo and Unilever, the French retail chain Carrefour increased the pressure on the large corporations and warned of hidden price increases.
Since Monday, Carrefour has marked 26 products in its stores in France with the words “For this product, the volume or weight has decreased and the effective price from the supplier has increased.” These warnings remained until suppliers agreed to price cuts, explained Carrefour boss Alexandre Bompard.
For example, Lipton reduced its bottle of sugar-free peach-flavored iced tea, manufactured by PepsiCo, from 1.5 liters to 1.25 liters, effectively increasing the price per liter by 40 percent. Nestle also did the same and reduced the amount of Guigoz infant formula by 70 grams per pack, while the Viennetta ice cream cake produced by Unilever shrank by 30 grams. Lindt and PepsiCo could not be reached for comment. Nestlé and Unilever declined to comment.
Consumer groups say “shrinkflation” is a widespread practice that supermarkets like Carrefour are also guilty of with their own-brand products.
Like other European countries, France has been trying for months to ease consumers’ distress amid rising living costs by pressuring major corporations to freeze or reduce food and transport prices. The price negotiations with suppliers, which usually take place annually, have been brought forward to September and are expected to lead to price reductions from the beginning of 2024.
Carrefour shares temporarily gained 1.35 percent higher at 17.305 euros on Euronext Paris.
Paris (Reuters)
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