Government Urged to Forcefully Negotiate Price Reductions with Food Manufacturers: French Inflation Slows

2023-07-31 13:00:00

The price war continues between food manufacturers and distributors. The government should ” ask manufacturers much more forcefully “to renegotiate” all prices Down from the start of the school year, claimed Monday Jacques Creyssel, general delegate of the Federation of Commerce and Distribution (FCD).

French inflation continues to slow to 4.3% year on year in July

« For there to be significant price cuts at the start of the school year, manufacturers must finally agree to renegotiate “, he launched on BFM Business. ” The subject today is to ensure that the reductions in raw materials translate into price reductions: to do this, the government must ask manufacturers much more strongly than today, to renegotiate all prices from the start of the school year “, he continued.

For now, only a small part of them, 15 to 20 out of the 75 concerned, have accepted temporary discounts on a few products, pasta, oil, a few sweet products: it is clear that this is not enough “, Judged the employer official. ” Last year, when there was war in Ukraine, the distributors all agreed to renegotiate upwards, making sure to go beyond the law “, he recalls.

Industrialists accused of profiting from inflation

« It is absolutely necessary that, in the other direction, the manufacturers accept this renegotiation so that there is not necessarily a “green September” but at least price reductions “, he said, before admitting” today an overall stabilization of the price level (…) now we really have to reverse gear from December ».

For the leader of the Trade and Distribution Federation, “ large industrial multinationals “(Coca-Cola, L’Oréal, Mondelez, Nestlé or Unilever, editor’s note)” take advantage of the situation: their costs fall and their prices remain very high: as a result, their margins increase considerably to the detriment of consumers ” what ” is not normal, especially since it results in a drop in consumption ».

Michel-Edouard Leclerc, Minister of Consumer Affairs

Last week, it was the very media-rich Michel-Edouard Leclerc, president of the strategic committee of the E.Leclerc brand, who called on the government to allow “ go and demand suppliers » a renegotiation of food prices. The executive director of purchasing and marketing of Lidl France Michel Biero castigated their ” opacity ».

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