The Wall Street Journal reports that Carrefour "which operates thousands of stores across more than 30 countries, said it would stop selling Pepsi, Doritos and other products in France, Italy, Spain and Belgium."
The company said it will post signage on store shelves explaining that the decision was made because of "unacceptable price increases."
According to the story, Carrefour "is no longer selling Lay’s, Doritos and Benenuts snacks, Alvalle gazpacho, Lipton teas, Pepsi and 7 Up soft drinks and Quaker food products. 7 Up is sold outside the U.S. by PepsiCo."
The Journal notes that PepsiCo finance chief Hugh Johnston said last October "that product price increases would slow in 2024 and would be roughly in line with the overall rate of inflation. The slowdown follows two years of sharp price increases by PepsiCo on its soft drinks, snacks and packaged foods.
"The company, which is slated to report its latest quarterly results next month, has forecast earnings growth of 13% and revenue growth of 10% for 2023, excluding currency impacts."
- KC's View:
It is an article of faith here that retailers need to act as agents for the shopper, not sales representatives for manufacturers. Not only that, they need to communicate that priority at every turn.
There are few things that retailers can do to reinforce this point than stop carrying products and saying that the reason is "unacceptable price increases."
I'll make two predictions here.
One is that PepsiCo will cave.
The second is that when PepsiCo's quarterly results come out next month, they'll exceed the company's forecasts - revenue will be higher, and profits will be even higher than that. Raising the question whether the price increases are related to inflation, or greedflation.
I wonder if any other retailers will take a cue from the Carrefour actions and also move against "unacceptable price increases." Not just against PepsiCo, but other companies that they may feel are taking advantage of the moment to feather their nests.
Could a global retailer/consumer uprising be on the horizon?
(Not to suggest that retailers never are guilty of "unacceptable price increases." That also happens, and it violates the principle of being agents for the consumer.)