2023-04-21 09:47:37
Dominique Schelcher, president and CEO of System U, called on the BFMTV set on Tuesday for new negotiations with manufacturers on product prices. The boss has also threatened to remove certain brands from its shelves, if they do not play the game by lowering prices. Invited to the microphone of RMC this Friday morning, Christophe Piednoël, general manager of communication for Lactalis, indicated that his group might not reduce prices before the end of the year, at least.
“We would like to lower our products. It is our interest, we would sell more. But the economic indicators do not allow us to do so, ”explained Christophe Piednoël in front of Apolline de Malherbe. He points to an increase in the cost of energy of 60%, wages up 10% and margins reduced to 1.36%.
Renegotiating is no
While the Minister of the Economy Bruno Le Maire is also asking for renegotiations between industrialists and mass distribution players, Christophe Piednoël remains firm: “We are going to come to the negotiating table to explain that we are maintaining the price of milk” . While returning the ball to the government: “We are aware of the situation of the French. We were very favourable, for example, to the food voucher, which was not implemented. We think we have to help the poorest”.
The Lactalis group, owner of popular brands such as President, Lactel or Galbani, would have seen its production costs jump by 20% in 2022, announces to Capital Thierry Clément, in charge of the general management of operations. “We would love to respond to Bruno Le Maire’s call but there, it’s impossible, he assures. We have just signed our rates for 2023. We had asked for a 12 to 15% increase and we did not even get 10%”.
“We made the choice to support breeders”
And to justify this categorical refusal to renegotiate, Lactalis also highlights the protection of breeders. Lower prices would be to the detriment of dairy producers, believes the industry leader. “We have made the choice to support breeders. We increased the price of milk by 30% last year. Do we want to weaken our agriculture to lower prices? “Asks Christophe Piednoël on RMC.
“We have to stop pointing the finger at us and calling us evil industrialists who stuff themselves. You just have to look at our results”, annoys Thierry Clément for Capital. However, Lactalis announced on Thursday that it had exceeded 28 billion euros in turnover in 2022, dethroning Danone as the French leader in the food industry. Its turnover has more than quintupled since 2000 and the group has acquired more than 100 companies.
Declining profitability
But if the activity of Lactalis progressed strongly last year (+ 28.4%), driven in particular by the increase in the selling price of its products, its profitability was reduced, with a net profit of 384 million euros (-14% over one year). Failing to have been able to fully pass on “the high inflation of our costs” (milk, packaging, energy…), underlined the boss Emmanuel Besnier during a press conference.
“Once the economic crisis is behind us with a drop in inflation, we will have to continue to restore value to products. But it will be done in the long term so price changes will be less brutal for the French,” warns Thierry Clément. Customers will therefore still have to wait…
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