Inflation: food manufacturers agree to price cuts

Bercy is on the go. Bruno Le Maire, the Minister of the Economy, wants, at all costs, to show his determination to ensure the ebb of the wave of inflation on the shelves of supermarkets. A wave of unprecedented magnitude that shakes the portfolio of the French. He therefore once again received representatives of the agri-food industry on Thursday, June 8, and obtained, it seems, some results.

Read also: Inflation: Biggest food companies agree to reopen price talks with supermarkets by end of month

“The seventy-five largest manufacturers in the agri-food sector have accepted early indexation so that the price of [certains produits de consommation courante]I am thinking in particular of pasta, falling from the month of July, whereas if there had been no early indexation, it would have been around September, October, or even later”said the boss of Bercy, Friday, June 9, on BFM-TV, who also cited, poultry, cereals or oils, namely the products whose “Wholesale market prices are falling”.

“The list of hundreds of products affected by what are called these shelf fund discounts will be provided to me next week by these seventy-five major manufacturers”continued the Minister, who added that the names of those who would see their margins continue to progress would be “revealed to the public”, because “that means they’re not playing the inflation game”.

The objective of Thursday’s meeting – to pressure companies to renegotiate lower prices for their products with distributors – seems to have, at least partially, paid off. A meeting in the continuation of that of Bruno Le Maire with the major retail chains (Carrefour, Intermarché, Leclerc and Système U), which led to the continuation of the “anti-inflation quarter” operation, launched in March, under the impetus of Bercy, and which leads distributors to take on their margins to lower prices, each with their own method (products, number of items, duration of the operation, amount of the discount …).

Read also: Deputies and senators agree on the bill modifying the relations between supermarkets and their suppliers

The “anti-inflation quarter” may have contributed to the slight slowdown in price increases in May. The research company Circana estimated the increase at 16% over one year, in May, against 16.2% in April. For its part, INSEE also estimates that all food prices are growing more slowly than at the start of the year, estimating the increase at 14.1% in May, against 15% in April.

“Several major manufacturers are playing for time”

But this rate of decline did not satisfy Mr. Le Maire who did not fail to designate those responsible. “Negotiations to lower prices are not going fast enough. Several large agri-food manufacturers are playing for time. If they don’t by the end of June, I’ll post a list of everyone who isn’t playing the game.”he threatened, after ascertaining with INSEE that the agri-food industry had more than rebuilt its margins since mid-2022.

You have 39.31% of this article left to read. The following is for subscribers only.