The situation is not likely to improve for the portfolio of the French, already strangled by inflation. The prices paid by distributors to agro-industrialists should increase by “regarding 10%” following trade negotiations which are due to end on Wednesday, said Tuesday the director general of the Federation of Commerce and Distribution Jacques Creyssel.
“We should be with the big brands at around 10% increase from the beginning of March”, declared Jacques Creyssel on France Info, explaining that the negotiations “are over for SMEs, for all the brands which are very largely French. “. The representative of the distribution nevertheless indicated that “the big brands (…) seek to impose a showdown with totally unjustified proposals for increases of 15-16%”.
Increases “naturally passed on”
Increases “impossible to accept in such a difficult period in terms of purchasing power”, according to the distribution representative who called on these brands to “participate in collective efforts”, citing Nestlé, Coca, Unilever and Procter & Gamble. ” Retailers [de la distribution] will naturally have to pass on these increases”, estimated Jacques Creyssel, assuring however that “they will do it in a responsible way by trying to limit the increases for consumers as much as possible”.
The negotiations are “extremely tense”, estimated for his part on Radio Classique the spokesperson for Lactalis, Christophe Piednoël, who has “signed with two of the major distribution networks out of five”. The milk giant is asking for an increase of between 9% and 15%, the “starting point” which “is first used to remunerate the price of milk” paid to farmers and “corresponds to the increase in our charges”, according to him. .
Some “delusional” increases
“Everyone must make an effort in a negotiation, some distributors have done it, others seem less ready to do it,” he added, without naming any distributors. Faced with inflation, Emmanuel Macron called on supermarkets on Monday to “participate in the effort”.
For their part, supermarkets denounce the lack of transparency and exaggerated requests for increases, the boss of Carrefour Alexandre Bompard even qualifying some of them as “delusional”. Having entered their home stretch, the negotiations (which concern products sold under so-called “national” brands, such as Danone or Fleury Michon) should once once more last until the last minute (fixed at midnight, Wednesday evening).
