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Carrefour puts ‘shrinkflation’ price warnings on food to shame brands
(www.theguardian.com)
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this post was submitted on 15 Sep 2023
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This is the best summary I could come up with:
The French supermarket chain Carrefour has put labels on its shelves this week warning shoppers of “shrinkflation”, the phenomenon where manufacturers reduce pack sizes rather than increase prices.
It has slapped price warnings on products from Lindt chocolates to Lipton iced tea to pressure top consumer goods suppliers Nestlé, PepsiCo and Unilever to tackle the issue in advance of much-anticipated contract talks.
Since Monday, Carrefour has been putting stickers on products that have shrunk in size but cost more even after raw materials prices have eased, to rally consumer support as retailers prepare to face the world’s biggest brands in negotiations due to start soon and end by 15 October.
“Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy,” Stefen Bompais, the director of client communications at Carrefour, said in an interview.
The Carrefour chief executive, Alexandre Bompard, who also heads the retail industry lobby group FDC, has repeatedly said consumer goods companies are not cooperating in efforts to cut the price of thousands of staples despite a fall in the cost of raw materials.
In this he is backed by the French finance minister, Bruno Le Maire, who in June summoned 75 big retailers and consumer groups to his ministry urging them to cut prices.
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