European supermarket giant withdraws Pepsico products due to high prices
One of the world’s largest supermarket chains is PepsiCo Inc., popular because of its high prices. The product is being pulled from European shelves.
France-based Carrefour SA CA;
The company, which operates more than 12,000 supermarkets worldwide, will begin selling products including Doritos and Lays chips, Pepsi and 7-Up sodas, Lipton tea and Quaker foods in stores in France, Italy, Spain and Belgium starting Thursday, according to multiple news reports. We started removing items.
“We are no longer selling this brand due to the unacceptable price increases. “We apologize for any inconvenience caused.” According to CNN, a sign on a display shelf reads:
The move comes as food producers and retailers, especially in Europe, are fighting over rising prices. In particular, food inflation has soared in France, and the French government has announced that it will push for price cuts.
Carrefour argued that food manufacturers were keeping prices high for their own benefit despite falling raw material prices. Last fall, the company tried to shame some of its suppliers by putting “shrink” labels on certain products, warning consumers that manufacturers had reduced package sizes, effectively raising prices.
Read more: ‘Greed’ is replacing inflation as companies raise prices to make bigger profits, the report said.
“We have been in discussions with Carrefour for several months and will continue to engage in good faith to help bring our products to market,” PepsiCo PEP said.
said in a press statement Thursday.
PepsiCo and Carrefour did not immediately respond to requests for further comment.
PepsiCo CEO Ramon Laguarta said on the company’s earnings call in October that prices are expected to continue rising in 2024 due to “high inflation” in the company’s business, according to FactSet records.
PepsiCo beat analysts’ expectations with third-quarter revenue rising to $23.453 billion from $21.971 billion a year earlier. Wedbush analysts said at the time that revenue growth was “completely price driven.”
PepsiCo shares are down about 3% over the past 12 months, while the S&P 500’s SPX is up 23%.
