Along with exploitation in the pursuit of profit, Capitalism is about competition, except where it colludes in cartels. However, to do down the opposition is always the aim and it seems that French Carrefour, the seventh largest retailer in the world, has hit on an interesting new marketing strategy where ‘virtue signalling’ is liable to have happy results for its shareholders.
Hard pressed consumers will always be looking to save pennies when buying life essentials. The real solution to more expensive commodities and ‘shrinkflation’ is Socialism where quality goods and services will be produced for use not profit, which means they will be free as money will have been abolished along with Capitalism.
It is reported that: ‘French supermarket Carrefour is telling shoppers that it will no longer sell PepsiCo products such as carbonated soda drinks Pepsi and 7up and Lay’s chips products because they’ve become too expensive, Reuters has reported.
According to the outlet, a spokesperson for France’s second biggest grocery has chain confirmed that it will place a note on shelves that have displayed PepsiCo goods which reads “We are no longer selling this brand due to unacceptable price increases.” It is unclear whether PepsiCo products already on Carrefour shelves will be withdrawn, the report added.
In October 2023, PepsiCo warned of “modest” price hikes in the new year amid steady demand. The US snacking and beverage giant has raised prices for seven consecutive quarters, hiking them by double digits in the July-September period last year. The company also reduced package sizes of some of its products claiming the aim was “to meet consumer demand for convenience and portion control.”
Last year, amid high consumer inflation, grocery retailers in several EU countries challenged global food giants over prices. Carrefour started a “shrinkflation” campaign in September, sticking warnings on goods that have shrunk in size but cost more.
Negotiations are underway in France between food manufacturers and retailers, with the latter demanding price cuts, as they say prices for raw materials and energy have recently come down. Food industry representatives argue that production costs remain high and that manufacturers have absorbed significant inflationary shocks.
French supermarket Carrefour launched an unusual campaign this week, putting stickers on products to warn customers of “shrinkflation”. The step, both in stores and on its website, names and shames suppliers that have reduced the weight or volume of their products, while keeping prices unchanged.
Shrinkflation – also known as package downsizing – refers to the practice of reducing the size or quantity of a product, as a means for the manufacturer to cut costs while maintaining sales volumes.
France’s second biggest grocery chain has marked 26 products in its stores with labels reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.”
Lipton Ice Tea, Lindt chocolate and Viennetta ice cream are among the products now being flagged, to put pressure on major consumer goods suppliers such as Nestle, PepsiCo and Unilever.
Carrefour found that the volume of can of Guigoz baby formula manufactured by Nestle has gone from 900 grams to 830 grams, while the weight of the Unilever-made Viennetta ice-cream cake has dropped to 320 grams from 350 grams. A bottle of sugar-free peach-flavoured Lipton Ice Tea, made by PepsiCo, has shrunk to 1.25 litres from 1.5 litres.
“Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy,” Stefen Bompais, director of client communications at Carrefour, told Reuters.
Carrefour’s move comes as brands are about to negotiate their arrangements with certain retailers.’
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