PepsiCo Products Are Being Pulled From Some Carrefour Grocery Stores in Europe Over Price Hikes

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PARIS (AP) — Global supermarket chain Carrefour will stop selling PepsiCo products in it stores in France, Belgium, Spain and Italy over price increases for popular items like Lay’s potato chips, Quaker Oats, Lipton tea and its namesake soda.

The French grocery chain said it pulled PepsiCo products from shelves in France on Thursday and added small signs in stores that say, “We no longer sell this brand due to unacceptable price increases.”

The ban also will extend to Belgium, Spain and Italy, but Carrefour, which has 12,225 stores in more than 30 countries, didn’t say when it would take effect in those three countries.

PepsiCo said in a statement that it has “been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available.”

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Its profits are up, though higher prices have dragged down sales as people trade down to cheaper stores. PepsiCo also has said it’s been shrinking package sizes to meet consumer demand for convenience and portion control.

“I do think that we see the consumer right now being more selective,” PepsiCo Chief Financial Officer Hugh Johnston told investors in October.

The Purchase, New York-based company said price increases should ease and largely align with inflation, which has fallen considerably worldwide since crunched supply chains during the COVID-19 pandemic and then Russia’s war in Ukraine sent prices surging.

However, the 20 European Union countries that use the euro currency saw consumer prices rise to 2.9% in December from a year earlier, rebounding after seven straight monthly declines, according to numbers released Friday.

Prices for food and non-alcoholic drinks have eased from a painful 17.5% in the 20-country euro area in March but were still up by 6.9% in November from a year earlier.

The U.N. Food and Agriculture Organization said Friday that its food price index was 13.7% lower in 2023 than the year before, with only its measure of sugar prices growing in that time.

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