Despite pressure from the French government to reduce prices, the country’s largest food manufacturers are not “playing the game,” according to grocery major Carrefour.
Carrefour’s CEO, Alexandre Bompard, stated that negotiations with manufacturers have resulted in only cosmetic changes to prices, despite a decrease in supply-chain costs linked to raw materials and energy.
“Most of the discussions with suppliers so far have resulted in promotional campaigns,” Bompard explained. “We have seen very little improvement in purchasing conditions for permanent prices.”
In response to rising consumer prices, the French government ordered the country’s 75 biggest food producers to cut prices. While some manufacturers have agreed to discount certain basic grocery items, Bompard suggested that not all manufacturers are following suit.
Regarding price negotiations, Bompard expressed that private-label suppliers have been more receptive, allowing the company to pass on price reductions to consumers. However, negotiations with national brands have not been as fruitful.
Bompard also revealed that earlier-than-planned negotiations with retailers were prompted by pressure from the French government. Failure to comply would have potentially led to tax measures or public naming and shaming.
