French Supermarket Chain Uses "Shrinkflation" Stickers Against Suppliers

The French supermarket chain, Carrefour, has affixed price warnings to a range of products, including Lindt chocolates and Lipton Ice Tea, in a move aimed at pressuring suppliers such as Nestlé, PepsiCo, and Unilever to reduce their prices.

Carrefour is applying stickers to products that have decreased in size but now cost more, despite a decrease in raw material prices. I Photo: François GOGLINS Wikimedia Commons

Carrefour is applying stickers to products that have decreased in size but now cost more, despite a decrease in raw material prices.

They are endeavoring to garner consumer support as retailers prepare to enter negotiations with some of the world's largest brands. These negotiations are set to commence soon and conclude by October 15.

Stefen Bompais, Director of Client Communications at Carrefour, explained, "Obviously, the aim in highlighting these products is to encourage manufacturers to reconsider their pricing policies."

Carrefour's CEO, Alexandre Bompard, who also leads the French retail industry lobby group FDC, has consistently argued that consumer goods companies are not cooperating in efforts to lower the prices of thousands of staple products, despite a decline in raw material costs.

He has found support in French Finance Minister Bruno Le Maire, who, in June, summoned 75 major retailers and consumer groups to his ministry, urging them to reduce prices.

Following a new round of meetings last month, Le Maire stated that Unilever (UL), Nestlé, and PepsiCo (PEP) were among the companies not adhering to price guidelines.

Starting this Monday, Carrefour has labeled 26 products in its French stores with tags reading, "This product has experienced a reduction in volume or weight, while the supplier has increased the effective price."

Carrefour is applying stickers to products that have decreased in size but now cost more, despite a decrease in raw material prices.

They are endeavoring to garner consumer support as retailers prepare to enter negotiations with some of the world's largest brands. These negotiations are set to commence soon and conclude by October 15.

Stefen Bompais, Director of Client Communications at Carrefour, explained, "Obviously, the aim in highlighting these products is to encourage manufacturers to reconsider their pricing policies."

Carrefour's CEO, Alexandre Bompard, who also leads the French retail industry lobby group FDC, has consistently argued that consumer goods companies are not cooperating in efforts to lower the prices of thousands of staple products, despite a decline in raw material costs.

He has found support in French Finance Minister Bruno Le Maire, who, in June, summoned 75 major retailers and consumer groups to his ministry, urging them to reduce prices.

Following a new round of meetings last month, Le Maire stated that Unilever (UL), Nestlé, and PepsiCo (PEP) were among the companies not adhering to price guidelines.

Starting this Monday, Carrefour has labeled 26 products in its French stores with tags reading, "This product has experienced a reduction in volume or weight, while the supplier has increased the effective price."

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