EVRY (dpa-AFX) - French retail giant Carrefour (CRERF.PK, CRRFY.PK),
announced on Thursday its decision to drop PepsiCo products from its shelves,
citing 'unacceptable price increases'.

Beginning from Thursday, January 4, the retailer said that all the shelves with
PepsiCo products will carry a sign saying the store will no longer be stocking
this brand's products. The products are being removed from its online sites too,
although previous stock of the same is still available in the stores.

PepsiCo has been consistently raising its prices in recent years, attributing
the increases to inflationary pressures. This strategy has contributed to a rise
in the company's revenue, prompting three upward revisions to its revenue
forecast in 2023, each following a price hike.

To address soaring prices, the French government has urged retailers and
manufacturers to engage in annual negotiations. However, the previous year's
negotiations resulted in elevated prices, impacting supermarkets. As a result,
retailers are eager to initiate price cuts this year. The government has called
for the conclusion of this year's negotiations in January, two months earlier
than usual, citing high inflation.

Carrefour, which has over 12,000 stores worldwide, has been very active in
negotiating prices with food giants. Last year, the chain started a
'shrinkflation' campaign against products which had shrunk in size but cost
more.

In a similar scenario, British supermarket chain Tesco halted the products of
Heinz over the price of beans and ketchup in 2022.



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