Carrefour, the French supermarket giant, has said it will no longer sell certain PepsiCo (NASDAQ:PEP) products in major markets across Europe due to “unacceptable price increases”, Reuters reported.
The move will affect products including Pepsi, Lay’s crisps and 7Up, at its stores in France, Italy, Spain and Belgium.
The French retailer’s decision is expected to impact more than 9,000 stores in those European markets, representing two-thirds of Carrefour’s global footprint.
It is part of a larger trend in which grocery retailers have halted orders from consumer goods companies amid tense price negotiations fuelled by inflation in supply chains.
Despite ongoing discussions with Carrefour, PepsiCo (NASDAQ:PEP)’s products are not available in some stores after the French retailer stopped making orders.
PepsiCo (NASDAQ:PEP) said in a statement in October that it had planned to make what it described as “modest” price increases this year.
Carrefour has been challenging big consumer products and food companies over pricing and began a 'shrinkflation' campaign last year.
It warned customers over products that have decreased in size but been marketed at higher prices.
In an attempt to curb inflation, the French government has asked retailers and suppliers to conclude annual price negotiations two months earlier than usual.
French regulation requires food and drink producers to negotiate prices once a year, which has resulted in high price increases locked in during negotiations that took place in a period of steep inflation.
This has impacted supermarkets’ turnover and prompted them to negotiate price cuts in the current round of negotiations.