The giant Mondelez admits to asking for “carefully studied” price increases in France

Biscuits and chocolates soon to be more expensive on the shelves? The American candy giant Mondelez took on Friday requesting “price increases in France” due to consistently high charges, with several distributors accusing it of excessive increases. The company which markets the LU, Milka, Belin and Côte d’Or brands, highlights the surge in the price of cocoa in particular, and says it faces still high production costs (energy, packaging, transport), in a press release sent to AFP. She therefore assumes duty “carry out carefully studied price increases in France”.

Ensuring that the price increase is a “last resort”Mondelez pleads not having “not passed on all the cost increases incurred” on prices negotiated with distributors since 2022, which “significantly impacts (its) profitability in France”. Three distributors had previously assured AFP on condition of anonymity that the manufacturer had asked to be paid much more than the previous year for its biscuits and chocolates in particular.

Every year between the beginning of December and March 1, large retailers negotiate with their food industry suppliers the conditions (purchase price, shelf space, promotional calendar, etc.) under which they will purchase a large portion of the foodstuffs from them. sold on its shelves for the rest of the year. “There has been friction with Mondelez for a while now, but they particularly stand out with unusual demands compared to their competitors and colleagues”one of the distributors explained to AFP. Another mentioned an increase in the price, the starting point of the negotiation, of 24% compared to the previous year. The third confirmed very sharply increasing demands, while observing that there was indeed “a subject” pour “suppliers who use a lot of cocoa and coffee”raw materials whose costs have increased significantly.

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In the media in recent days, several figures in the sector such as Michel-Edouard Leclerc (Édouard Leclerc), Thierry Cotillard (Les Mousquetaires/Intermarché) or Dominique Schelcher (Coopérative U), had criticized the demands for high price increases from certain manufacturers, without designating them by name. The price increases are pre-negotiation data, which do not presume the outcome of the negotiation, nor the price ultimately charged by the distributors on the shelves. Especially since it is the merchant who decides the selling price to consumers.