Resolving the Pricing Disagreement: Pernod Ricard and E.Leclerc Working Towards a Solution

2023-06-19 11:11:08
By Le Figaro with AFP

Posted 38 minutes ago

Already in 2019, Pernod Ricard and E.Leclerc had failed to reach a pricing agreement. Adobe Stock

Pernod Ricard, in the midst of a commercial disagreement with the leader of French supermarkets Leclerc, said it was “confident” on Wednesday and indicated that it was “working actively” to resume supplies.

The president of the strategic committee of the E.Leclerc centers, Michel-Edouard Leclerc, said to himself on Monday “not surethat consumers are finding Pernod Ricard products this summer on the shelves of France’s leading supermarket due to a trade disagreement with the agribusiness giant. “For the moment we are negotiating with them throughout Europe so that the French can have their bottles“Explained on BFM / RMC Michel-Edouard Leclerc, according to whom the commercial dispute with the world number two in spirits has been going on for six months. “It shows that it is not so easy to negotiate even for a large distributor“, even if it has purchasing alliances with other European brands to improve the balance of power with agro-industrial suppliers, “with Ricard who is the king of margins and profit in his sector and who can do without selling at E.Leclerc for a year».

“All this will end up with the mediator”

«All this will end up with the mediator“Commercial relations, further estimated Michel-Edouard Leclerc, for whom”E.Leclerc has more to lose (than manufacturers, editor’s note) in terms of turnover by not having Coke or Ricardin its supermarkets. “But in terms of credibility with our customers, it’s not good either to have too expensive Ricard“, he said again. Pernod Ricard, which supplies supermarkets with products such as Ricard, Ballantine’s, Suze, Havana Club and Jameson, said to itself on Wednesday “confident» and had indicated «actively working” to find a solution “as soon as possibleto resume supplies.

As it stands, the two companies have not reached a commercial agreement, leading to a halt in supply and therefore a gradual disappearance of products from the shelves, detailed a source familiar with the matter, reporting “discussions” in progress and refuting the terms of “conflict” and of “boycott“. Already in 2019, Pernod Ricard and E.Leclerc had failed to reach a pricing agreement and the French leader in food distribution had temporarily delisted all of the spirits group’s brands in its stores. The dispute had lasted more than two months before the products gradually returned to the shelves.

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