Pepsi products will no longer be sold in France by grocery giant Carrefour, which cited “unacceptable price increases”.
The grocer began posting notices in-store on Thursday alerting consumers to the decision, which would have an impact on items including Quaker cereal, Pepsi cola, and Doritos.
Pepsi declared that it would keep up its “good faith” efforts at negotiation.
The argument occurs as France struggles to keep up with the uncomfortably rapid rise in food prices.
According to the government statistics agency’s most recent data, food prices increased 7.1% in December compared to the same month last year.
Last year, French Finance Minister Bruno Le Maire threatened to impose special taxes on “undue” earnings, pressuring large food corporations to lower their prices.
In an attempt to address the issue, the government also extended the deadline for price talks between grocery stores and food producers to this month.
In light of growing expenses, Pepsi has increased pricing in recent years. It stated in October that more hikes were anticipated in 2024.
Additionally, the business has engaged in what detractors refer to as “shrinkflation,” which is the practice of shrinking the size of packets offered for sale without concurrently lowering prices.
The second-biggest grocery store in France, Carrefour, has been among the most well-known shops to criticize the practice.
It was reported in September that a French supermarket was posting signs about “shrinkflation” on a number of products, including the Pepsi-brand Lipton Ice Tea.
“We are no longer selling this brand due to unacceptable price increases” is written on the updated Pepsi package notes, a photo of which the firm posted on LinkedIn.
The official informed the news agency that French consumers will still be able to purchase Pepsi products that are already available on the shelves despite the pricing war.
Pepsi claimed to have spoken with Carrefour for several months.
“We will continue to engage in good faith in order to try to ensure that our products are available,” added the statement.
While rare, the public price dispute is not unprecedented.
Tesco and Kraft Heinz clashed in 2022 over price increases for necessities such tomato soup, ketchup, and baked beans.
Due to price increases, German supermarket chains Edeka and Rewe also stopped selling a few products made by the company Mars.
A disagreement between Mondelez, the company that makes Milka chocolate, and Colruyt, a Belgian supermarket, resulted in a supply shortage last year, according to Edeka and Pepsi reports.