Rapidly rising food prices have prompted a standoff between PepsiCo and Carrefour, prompting many locations to drop PepsiCo products entirely per MSN. Could consumers be impacted? Here’s what we know.
Carrefour is a large-scale grocer that owns locations around the globe, spanning 30+ countries a the time of this publication. MSN spoke to a spokesperson for the brand, who called the prices “unacceptable” and stated that notes would be left on shelves to explain the changes to customers.
While differences may look different as they roll out across Carrefour locations, publications have already taken note of common trends for consumer knowledge. Wall Street Journal has since confirmed that Carrefour no longer sells commonly-seen grocery products in their stores, including:
Per MSN, PepsiCo CFO Hugh Johnston has confirmed that the price increases would occur as a result of inflation. He also was quoted assuring the public that the pricing increases would slow down going into 2024.
MSN also noted that PepsiCo had been implementing steep price hikes over the past two-year period (between 2022 and 2024). As a result, PepsiCo is expected to report quarterly earnings growth of 13% for Q4, and has already reported an estimated revenue growth percentage of 10% in 2023.*
*This figure excludes any current currency impacts worldwide
When MSN requested a quote from PepsiCo, a spokeswoman for the company confirmed that “We (PepsiCo) have been in discussion with Carrefour for many months, and we will continue to engage in good faith in order to try to ensure that our products are available.” There was no further comment made upon MSN’s request.
PepsiCo as a brand is relatively popular on the global stage. Per MSN, Europe represents 14% of PepsiCo’s profit, equating to about $9 billion in global revenue. During MSN’s investigation, they found that Callum Elliot, an analyst from Bernstein, estimates that Carrefour stores in Belgium, Italy, France, and other key areas of Europe are responsible for 0.25% of global revenue alone.
The French government has gone on record challenging food price inflation from major manufacturers, according to MSN. The food price inflation rates reached nearly 16% in March of 2023 in France, and December alone saw prices rise 7.1% over the most recent 12-month period. As a result, the government is working to rally behind the people in an attempt to lower prices.
Carrefour has also made the decision to attach shrinkflation labels to products that have been “shrinkflated,” or that no longer offer the consumer the same value, according to MSN.