Home Economy French supermarkets to push for up to 5% price cuts from food groups

French supermarkets to push for up to 5% price cuts from food groups

French supermarkets to push for up to 5% price cuts from food groups

French grocery store chains are poised to request meals producers to cut back costs by 2% to five% as they put together for upcoming negotiations, the pinnacle of retailer Les Mousquetaires instructed lawmakers on Wednesday in a roundtable with executives.

French retailers have criticized client items giants like Unilever and Nestle for value hikes they are saying are unjustified. The authorities has additionally put stress on client items makers to chop costs.

Lower uncooked materials and vitality prices imply producing meals and different client items is cheaper, Les Mousquetaires President Thierry Cotillard mentioned, and costs agreed in negotiations ought to mirror that.

“We should probably be able to demand that the big (consumer goods) groups cut prices by between 2% and 5%,” he mentioned.

Cotillard mentioned the group’s business in Portugal had managed to barter decrease costs with client items companies as a result of value talks there are usually not restricted to an annual window. Les Mousquetaires operates in Portugal beneath the Os Mosqueteiros banner.

“Our request, to be able to negotiate throughout the year like our friends in Portugal and Spain, strikes us as perfectly legitimate,” mentioned Cotillard.

France, which has laws dictating an annual window for value negotiations – from December 1 to March 1 – is contemplating a legislation that may carry ahead the negotiations, aiming for talks to start quickly and wrap up by Jan. 15.

“We are asking you, in the relationship we have with consumer goods groups, to trust us and to let us negotiate,” Carrefour CEO Alexandre Bompard instructed lawmakers.

Lawmakers additionally questioned Systeme U CEO Dominique Schelcher and E Leclerc co-president Philippe Michaud within the parliamentary committee on financial affairs.

Representatives of the meals trade, chatting with lawmakers after the retail executives, argued that manufacturing prices stay excessive and producers have absorbed a major a part of the inflationary shocks.

Miloud Benaouda, a board member of the meals trade foyer group ANIA, instructed lawmakers that campaigns to publicly disgrace corporations like Nestle and Unilever for “shrinkflation” have been unhelpful and will dissuade multinationals from investing in France.

Lawmakers additionally requested about shopping for alliances, which some supermarkets use to barter costs collectively with friends on the European stage, and whether or not they allow retailers to evade French laws on pricing.

France’s Senate has beforehand mentioned in a report that such alliances permit retailers to bypass French legislation.

E. Leclerc co-president Michaud denied that, saying, “We buy as a group, not to evade any law but in order to have sufficient clout against manufacturers.” E. Leclerc is a part of the Eurelec shopping for alliance, with German retailer REWE Group.

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