• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
RetailCarrefour
Europe

PepsiCo and a French supermarket giant are arguing over who dumped who first in ‘shrinkflation’ tussle

Ryan Hogg
By
Ryan Hogg
Ryan Hogg
Europe News Reporter
Down Arrow Button Icon
Ryan Hogg
By
Ryan Hogg
Ryan Hogg
Europe News Reporter
Down Arrow Button Icon
January 9, 2024, 11:01 AM ET
Carrefour said last week it had decided to pull PepsiCo products from many of its shelves over a “shrinkflation” argument.
Carrefour said last week it had decided to pull PepsiCo products from many of its shelves over a “shrinkflation” argument.Mustafa Yalcin—Anadolu/Getty Images
Add Fortune on Google for similar content.

French supermarket giant Carrefour was lauded for its gutsy move last week when it seemingly removed PepsiCo products from stores, in a battle to fight “shrinkflation.” But PepsiCo has now disputed this version of events, saying the disappearing products are actually the result of contract negotiations.

Carrefour previously said it was pulling products like Doritos, Cheetos, and 7up from its shelves in France, Italy, Spain, and Belgium, following tussles over “shrinkflation.” This occurs when suppliers reduce the sizes and contents of their items without reducing prices.

The group’s move, described as a “show of strength” by the chairman of Carrefour’s biggest rival, E.Leclerc, appeared to be an escalation in tensions in what has become a politically charged issue during a cost of living crisis.

However, according to a statement shared with the Wall Street Journal, PepsiCo has now claimed that the removal of products wasn’t Carrefour’s decision at all—but rather its own.

A representative for PepsiCo told the WSJ that Carrefour had “regrettably mischaracterized the chain of events” when the supermarket claimed it had banned the supplier’s products in some of its stores.

“Given the lack of agreement on a new contract, we stopped supplying to Carrefour at the end of the year, something they were aware could happen. We hope we can agree on terms soon so our products can be back on their shelves for consumers to enjoy,” the spokesperson said.

A representative for Carrefour in turn responded to the WSJ, countering PepsiCo’s claims. 

“We, at the Carrefour Group, have taken this decision,” the spokesperson said.

Representatives for PepsiCo and Carrefour didn’t immediately respond to Fortune’s request for comment. 

In a statement provided to Fortune before the publication of the WSJ’s report, a representative for PepsiCo said: “We’ve been in discussion with Carrefour for many months, and we will continue to engage in good faith in order to try to ensure that our products are available.”

War between suppliers and retailers intensifies

The counterstatements between two major companies—which made a combined $176 billion in revenues in the past financial year—are highly unusual, indicating how tense negotiations appear to have become between European retailers and major global suppliers.

Arguments around inflation have been reframed in recent months as the consumer price index has fallen back toward central bank targets of 2%, and consumers plagued by months of high prices have become more sensitive to further price increases. 

Analysts are also questioning the narrative that inflation was driven by rising costs linked to supply-chain crunches in the wake of the COVID-19 pandemic and Russia’s invasion of Ukraine. 

Instead, opportunistic profiteering has been blamed for a significant share of price increases, known as “greedflation,” according to a joint study by Common Wealth and the IPPR. 

That has caught the eye of the French government, which pressured food suppliers in the country to lower their prices last summer—even threatening financial sanctions for companies that didn’t bring down prices in the face of falling raw material costs.

In that context, Carrefour had appeared emboldened to push PepsiCo to buckle under a growing PR storm by taking the bold move to remove products from its shelves.

It followed a previous move by the supermarket to publicly shame PepsiCo and other brands, including Unilever, by attaching labels to products it said had increased in price despite shrinking in quantity.

Out on its own

However, in the days since Carrefour claimed it had removed the items from its shelves, it has struggled to persuade other major retailers to follow suit.

Speaking to French news channel BFMTV Monday, E.Leclerc chairman Michel-Edouard Leclerc said his company wouldn’t be removing PepsiCo products from its shelves, preferring instead to engage in discussions with the soft drink giant. 

Leclerc had previously appeared to back Carrefour’s stance in a LinkedIn post Friday, as corporations come to blows over who should absorb rising costs and customers increasingly become impatient with years of price increases.

PepsiCo has a blueprint to turn to for its current fraught standoff with a major retailer.

In January 2022, PepsiCo halted shipments of its Frito-Lay potato chips to Canadian grocer Loblaw after the retailer refused a price increase of less than 10%. 

Loblaw announced in April of that year that the snack would be returning to its aisles after the pair eventually struck a deal, the Financial Post reported.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
Ryan Hogg
By Ryan HoggEurope News Reporter

Ryan Hogg was a Europe business reporter at Fortune.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Retail

An open plain bagel with cream cheese smeared on a plate.
North AmericaImmigration
Seeds, schmear, sesame: How a bagel’s toasted crunch that became a reflection of America’s identity
By The Associated Press and Josh CornfieldJuly 21, 2026
21 hours ago
Lauren Sánchez Bezos put $34 million behind reinventing what clothes are made of—and stirred a debate about Amazon
Environmentphilanthropy
Lauren Sánchez Bezos put $34 million behind reinventing what clothes are made of—and stirred a debate about Amazon
By Sydney LakeJuly 21, 2026
23 hours ago
wilt
Arts & EntertainmentAuction
Gen Z entrepreneur found a Wilt Chamberlain Lakers warm-up for $3.07 outside Portland — it was a $90,000 genuine article
By Claire Rush and The Associated PressJuly 21, 2026
1 day ago
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
Arts & EntertainmentDisney
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
By Joshua HongJuly 21, 2026
1 day ago
A Jersey Mike's logo is displayed outside one of their stores in San Diego, California.
InvestingIPOs
Jersey Mike’s IPO valuation could reach eight times Sweetgreen’s market cap
By Sheryl EstradaJuly 21, 2026
1 day ago
LaLiga president says tech is already making the fan experience better, and it could solve football’s money problem too
AISports
LaLiga president says tech is already making the fan experience better, and it could solve football’s money problem too
By Catherina GioinoJuly 20, 2026
2 days ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
23 hours ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
1 day ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
1 day ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
2 days ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.