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The logo of Leclerc is seen on shopping trolleys outside a Leclerc hypermarket in Reze near Nantes. File photo: STEPHANE MAHE/REUTERS
The logo of Leclerc is seen on shopping trolleys outside a Leclerc hypermarket in Reze near Nantes. File photo: STEPHANE MAHE/REUTERS

Paris — The head of Leclerc, France’s biggest supermarket chain, said on Monday it is still selling Pepsi after rival Carrefour ditched PepsiCo products in the latest tug-of-war between retailers and global food giants over prices.

Michel Edouard Leclerc also told BFM TV he is optimistic that food inflation in France will return to a range of 2.5%-3% in 2024 as consumer goods companies have become “more reasonable”.

Commenting on annual price negotiations with suppliers due to end on January 31, Leclerc said he has asked French food giant Danone for price cuts, which he hopes will become effective in February-March.

“All the big industrial groups are playing for time. They are in no hurry to sign before January 31. Prices for the year are being decided now,” he said. “I want to be the most affordable [retailer] in France ... I will ask Danone for deflation,” he added, without citing a figure.

Danone said in a statement that it is holding weekly meetings and talks with all its clients on all its product categories. “The coming weeks will be key for finding with our partners the right balance between protecting the French purchasing power and supporting a fair, lasting and responsible [business] model,” it said.

France has been gripped by a debate over the price of staples, with retailers claiming that producers’ price increases are unjustified. The government has demanded retailers and suppliers finish annual price negotiations in January, two months earlier than usual, as it seeks to lower inflation.

Asked if Leclerc would, like Carrefour, withdraw PepsiCo or any other products from its shelves because of high prices, he said: “I continue to sell Pepsi.”

“We can tell suppliers: see with lower prices you can build up revenue and I think this argument will prevail over a show of strength,” he said.

Carrefour said last week its stores in France, Belgium, Italy, Spain and Poland would no longer stock products including Pepsi, Lay’s Crisps, Cheetos and 7up because of “unacceptable price hikes”.

Reuters

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