In full negotiations with hypermarkets and supermarkets in France, the American biscuit and chocolate giant Mondelez (LU, Milka, Belin, Côte d’Or) is criticized for its strong demands for price increases, which it tried to justify on Friday .
Commercial negotiations take place each year to determine the conditions (purchase price, shelf space, promotional schedule, etc.) under which large retailers will purchase from their suppliers a large portion of the foods sold on their shelves.
And every year between December and March 1, the standoff takes place both in the negotiation rooms and through the media.
In recent days, several figures in mass distribution, such as Michel-Edouard Leclerc (E.Leclerc), Thierry Cotillard (Les Mousquetaires/Intermarché) or Dominique Schelcher (Coopérative U) have criticized some of their suppliers, accused of asking for price increases. high prices.
“We have requests for increases. There are people who are very reasonable, especially SMEs, around 3%”for example exposed Dominique Schelcher on Friday morning on BFM/RMC. “With some of the largest companies (…) it can go up to eight, but we have – I am thinking of a particular request – a request for a double-digit increase”.
Mr. Schelcher pointed out a “very large industrialist” but did not reveal the identity, and Coopérative U, questioned by AFP, did not wish to say more.
“Friction”
Three distributors, however, assured AFP on condition of anonymity that the giant Mondelez, manufacturer of biscuits and chocolate under the LU, Milka, Belin and Côte d’Or brands, had presented much higher start-of-negotiation prices. than the previous year.
“There has been friction with Mondelez for a while now, (which) particularly stands out with unusual demands compared to their competitors and colleagues”one of the distributors explained to AFP.
In recent years, several media outlets have reported strong tensions between Mondelez and certain brands, some going so far as to remove – temporarily – the products of this group from the shelves of their supermarkets.
-Another distributor mentioned on Friday as a starting point for negotiations a price increase 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.
This is also what Gilles Rouvière, general director of Alliance 7, the federation of grocery products and specialized nutrition, argues: “while it is undeniable that overall inflation has fallen sharply, the costs of several major raw materials remain sharply rising”notably cocoa, coffee, butter or oranges, he tells AFP and on his LinkedIn account.
“Continue to provide”
Mondelez itself highlights in a press release the surge in the price of cocoa in particular, and says it faces still high production costs (energy, packaging, transport).
“We understand the economic pressures consumers continue to face, and raising prices is a last resort for our business”she assures.
But the company claims not to have “not passed on all cost increases” suffered since 2022, which weighs on its profitability in France where it “directly employs nearly 3,000 people across 12 sites, including nine biscuit factories and a European research and development center dedicated to biscuits”.
“As a result, we must make carefully considered price increases in France that reflect the costs that impact us, so that we can continue to provide consumers with the brands they love, without compromising the taste and quality they love. wait »declares the company to AFP.
The price increases are pre-negotiation data, which presuppose neither the outcome of the discussions nor the price ultimately charged by the distributors on the shelves. Especially since it is the retailer who decides the selling price to consumers in his stores.
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