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Inflation has been at the top of consumers\u2019 minds for the better part of the last two years. But when one of Europe\u2019s major grocers removes products over high prices, that\u2019s when you know it\u2019s really happening\u2014and it\u2019s hurting shoppers.\u00a0<\/p>\n
But after pulling PepsiCo products like Doritos and Pepsi from its shelves due to their \u201cunacceptable\u201d price tags, French supermarket Carrefour has finally buried the hatchet.<\/p>\n
Europe\u2019s largest grocer has brought PepsiCo products back to its store racks in France, the Wall Street Journal<\/em> reported Wednesday<\/a>.<\/p>\n \u201cIt\u2019s nice to see friends we haven\u2019t seen for a long time,\u201d Carrefour\u2019s executive director Alexandre de Palmas said in a post on X on Wednesday, holding a bottle of Pepsi.\u00a0\u00a0<\/p>\n \u00c7a fait plaisir de revoir des amis qu\u2019on n\u2019a pas vus depuis longtemps @pepsicofrance<\/a> pic.twitter.com\/0ACITgCmI1<\/a><\/p>\n \u2014 Alexandre de Palmas (@a_depalmas) April 3, 2024<\/a><\/p><\/blockquote>\n <\/p>\n The fight between the two behemoths has been building up for several months now. Last year, Carrefour slapped \u201cshrinkflation\u201d warnings<\/a> on products by the likes of Nestle, Unilever and, of course, PepsiCo, to call their practices out. It was part of the effort by the store to hold prices as low as possible even though brands are hiking prices for their part. The trade-off is grocers face pressure on their margins<\/a>, too.<\/p>\n At the turn of this year, the French grocery chain took PepsiCo products off<\/a> its shelves in response to inflation at a time when consumers\u2019 incomes were squeezed. The two argued<\/a> over what led to their fallout\u2014while Carrefour said it\u2019s pushing back against shrinkflation, PepsiCo has argued it\u2019s because contract negotiations have gone awry. It\u2019s still unclear what transpired between the food and beverage brand and supermarket chain, but it was significant that PepsiCo products weren\u2019t on Carrefour shelves.<\/p>\n A PepsiCo spokesperson told Fortune <\/em>that the company was \u201cpleased to have reached an agreement and are delighted that our products are returning to Carrefour\u2019s shelves for people to enjoy once again.\u201d<\/p>\n The tug-of-war between companies and grocers over price-related matters have led to such instances in the past. For instance, in U.K.\u2019s Tesco stopped stocking Kraft Heinz\u2019s baked beans, ketchup and tomato soup in 2022 over pricing quarrels. Manufacturers have tried to justify price increases in the face of inflation as a necessary evil to cope with production costs. However, retail chains argue the measure is hurting customers and their ability to buy basic food items.\u00a0<\/p>\n Across Europe, the crackdown on price hikes has picked up in recent times\u2014the U.K.\u2019s competition watchdog has warned supermarkets against profiting<\/a> from price increases. Luckily for supermarkets, prices are cooling which means less time and resources spent contending with rising food and beverage prices. Governments are also taking different approaches<\/a> to absorb some of the price difference.<\/p>\n Details of PepsiCo\u2019s and Carrefour\u2019s arrangement aren\u2019t known yet.\u00a0<\/p>\n Representatives for Carrefour didn\u2019t immediately respond to Fortune<\/em>\u2019s request for comment.<\/p>\n<\/div>\n\n
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