2023-11-06 10:18:33
Commercial negotiations between manufacturers and distributors began early this year to pass on the current slowdown in prices to consumers more quickly.
A bill to advance commercial negotiations between manufacturers and distributors was passed last month. This law aims to force distributors and manufacturers to conclude their annual negotiations on January 15 instead of March 1, to pass on the current slowdown in prices to consumers more quickly. And to reduce margins in the agri-food industry in particular, the government wants “ have both manufacturers and distributors sign a margin moderation agreement ».
“It’s not happy”
But then, can we really expect a significant drop in prices in the coming months thanks to this progress in negotiations? According to Michel Edouard-Leclerc, boss of the eponymous brand, “ all the prices we receive (from manufacturers) are increasing, between 6 and 10% increase request for 2024 ». « That’s not happy, we’ll have to bring that down to 2%, 3% maximum (at the end of annual negotiations). As a result, it will break inflation, we will ask big companies, like Nestlé, to dilute their increase proposals », defended Michel-Edouard Leclerc this Monday on franceinfo.
And to add: “ We’re going to tell them ‘we’re not anti-industrial, but you took too many margins last year. »
« I think that inflation will go down, when we take the underlying inflation, which is the inflation of current products, we have just experienced a 17% increase in a year and a half and therefore for the curve to fall, we will have to ‘y use dare dare “, still believes the boss of Leclerc who notes that the “ cereal market has fallen enough this year to have cheaper pasta, pizza etc. “. Another product that might decline: coffee.
An effort required of multinationals
« Everything that is non-food but also little produced in France will go down completely. There are real declines. What was expensive last year was transport costs from Asia », assures Michel-Edouard Leclerc who gives the example of textiles or even Christmas toys which should be known “ real drops, of the order of 2 to 3% », while the year 2022 had been particularly expensive.
However, he specifies that consumers will not be able to escape increases in “licensing” of certain toys associated with films, like Barbie for example.
While Michel-Edouard Leclerc hopes (with other distributors) to obtain “ inflation halved on 65% of supply » (the proportion of multinationals’ products, the remaining 35% are produced by SMEs). The objective is above all to negotiate with multinationals, in a position to cut into their margins.
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