French supermarket stops selling Pepsi and Lays over excessive price hikes?

Question

French supermarket Carrefour in Paris has stopped selling Pepsi products (soda and Lays potato chips) because they think PepsiCo's recent price hikes are excessive.

Here's the story...

Pepsi, Lay’s dropped by one of the world’s biggest grocers over price hikes

What do you think of this?

A good move by the store? Or should such a decision be left up to consumers?

molonski2 · Accepted Answer

Having worked in this industry for many years it is NEVER up to the consumers - never , now it may be slightly different in USA , but France would be closer to Australia , Australia is basically a Duopoly , Coles / Woolworths control more than 80 % of product distribution and sales , its all done via cooperative advertising spend , and that is you are basically paying for your space..

An example " Pal Dog Food " massive market leader , the most known brand , Woolworths wanted a larger co operative spend , to take Pal inline with a competitor , when the company said " Fck you " they deleted every Pal product and just kept the main one and put it on bottom shelf.. So what happened? Category sales only fell by 5% but margin improved with other brands..

In 60 days , Pal were instructed by the parent company to " Get those Fcken products back no matter the cost " - Who pays in the long run? The consumer pays , but they don't decide.

My company was always shafted by Gillette , who just sold on a much higher price tag , thus increasing profit , we sold millions of units , but at " mickey moose " prices , so who did they really wish to sell? Also the reasoning that the French are giving here , could well simply be false. In the case of Woolworths / Coles , prices can only rise by a certain percentage , no more than twice every two years.

Soteris · Accepted Answer

It would be insane to expect supermarkets to treat every brand and item the same. Their whole business model revolves around making profit by selling products and as such they obviously put the things that will make them more profit in a better location and with better marketing. Things like advertising sales for example to promote more purchases of a specific product.

Generally speaking it is the customers that the supermarkets are aiming for the most but it obviously also includes the producers as well. Having the producers increase the price of their products puts the supermarkets in a bad situation so obviously they have to react to that. This is an example of the system working as intended. You can argue if it may or may not give the best results, but at least the process is correct.

Expecting that consumers should make the decision is ridiculous since that would mean that supermarkets no longer has any control over their own inventories and are forced to sell things against their wills. I dont even know how such a system would work in fact, its that weird and unworkable.

Daniela1982 · Accepted Answer

You have to subscribe to see the article. My opinion is that sugary drinks can cause diabetes and weight gain. Diet drinks are even worse as they cause glucose intolerance. That is bad news for your health. I started drinking NO SUGAR Pepsi and it gave me increased hunger and snacking because your body was seeking to get the sugar you need for energy in other ways, like eating more, because it no longer gets it from sugar drinks. Best bet is to stop drinking any soft drinks and drink water/tea instead.

lilBigPotato · Accepted Answer

There are a few supermarket chains here in Europe who have done this when different brands. I think it's good, some products clearly tried to double down on the whole "we need to increase prices because of inflation"

GregorSamsa · Answer

It's their supermarket, they can sell what they want (or not). Pepsi and Lays appeal to addicts. Addicts will get their fix from somewhere, regardless. (Speaking as a Pepsi addict for over 30 years). I have not had any carbonated drinks/soda in 7 years now and do not miss it because I've broken the addiction. However, I am forever irreparably damaged (physically) from all the years I drank that shit. There's no getting that kidney/bladder function back or fixing the metabolic syndrome/type 2 diabetes that resulted from it.

RebelinSteel · Answer

Yes they should drop them. It is the supermarket that decides what they will stock, if the price increase is too much, then it’s hard to pass on to the customer and still make a profit. Also sugary soft drinks should be taxed more to increase they retail price.

Lionman95 · Answer

Not only France. It´s happening in Germany as well there are supermarkets that don´t sell Pepsi anymore since they argue the prices Pepsi asks of them is too high. I don´t mind it because there are other coke brands nonetheless, it´s not like you can´t get a coke anymore.
I don´t think it´s a bad move because if they offered it with higher a price than other coke brands probably less people would buy it.

juliammm · Answer

It is only one chain of supermarkets, not all of them. So the consumer has a choice.

Their policy is understandable as they are trying to look good in the "Inflation statistics".

Today's consumer is more driven by these statistics than individual product prices.

purplepoppy · Answer

You can get other brands of pop far cheaper than Pepsi, some are less than half the price and are pretty comparable. I can also see the attraction of promoting local pops over American ones as a marketing strategy.

TheGuyWhoKnowsStuff · Answer

A good move by the store. Most stores do not care about their customers, do not pass on savings and increase the price to gouge customers – it only became more noticeable during COVID

NamerOfStars · Answer

Interesting. I wonder how Pepsi and Lays prices (and price increases) compare with similar companies and products. Anyone have that information on hand?

exitseven · Answer

It is probably not a good idea to totally drop the products but I do know how well they sell in France anyhow. Maybe the French won't even notice. I know if they stopped selling frogs legs in the local A&P I would not notice.

Avicenna · Answer

Carrefour is a very large international grocery chain, so this is pretty significant news. It also isn't a discounter, it's more of a higher-end chain.

OlderAndWiser · Answer

I don’t really care much about what happens in France. It’s like a different planet.

goaded · Answer

I think it's a good thing. Several German supermarkets have done similar things. (It doesn't hurt that they have own-brand alternatives.)

zagor · Answer

When I was first in Paris years ago it cost more for a tiny bottle of Coca-Cola (less than 2/3 the volume of a 12 oz can) than for a half-carafe of decent house wine.

QuietRunner · Answer

good move

I guess with all the minimum wage and inflation hikes in the United States due to Putin's Price hikes, the French supermarket Carrefour couldn't absorb the price increases for their customers.

Staximus · Answer

Frito-lay almost has a monopoly on the chip business and sells you a bag of air and a few chips for $2.50

douride2 · Answer

Only time & the customers will tell if they made the right decision or not.

Anonymous · Answer

I assume it's a commercial decision. If they think the product won't sell at those prices they won't want it taking up shelf space. Same way they stopped stocking Miller Lite after the kerfuffle.

Cubus · Answer

didn't they ban ketchup in schools? Maybe they just want people to eat healthier?

HouseMoat · Answer

Good Give them a taste of their own medicine

Kingofkings1992 · Answer

Has nothing to do with what the consumer wants. They can run their business any way they see fit.

RavVid · Answer

It is a consumers choice

butterly248 · Answer

Another thing the French can riot over 🤣

love_conquers_lust · Answer

I can do without both.

msc545 · Answer

Good move!

French supermarket stops selling Pepsi and Lays over excessive price hikes?

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