Large brands, such as Intermarché, are in the middle of negotiations with their suppliers in France. It is also a very important process which takes place every year between the beginning of December and March 1.
“Industrialists that I would almost describe as irresponsible”
These negotiations determine the purchasing conditions for agri-food products for the rest of the year. And the least we can say is that Thierry Cotillard, boss of Intermarché, expressed his anger.
The latter did not hesitate to speak out to denounce the price increases considered excessive, proposed by certain manufacturers. In an interview with France Info, Thierry Cotillard expressed his dissatisfaction.
He highlighted suppliers’ demands for price increases. He declared: “Industrialists that I would almost describe as irresponsible came with price increases”. According to him, these are significant and unjustified increases.
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For the coming year, after a period of marked inflation in food products, the objective of the negotiations was clearly to seek to control prices. On the other hand, the boss of Intermarché admitted that this objective “is not completely won”.
However, commercial negotiations are very important. And for good reason, they determine not only the purchasing prices of products for supermarkets, but also the way in which these products will be presented on the shelves.
This will also reveal the promotions offered. On the other hand, certain suppliers, notably major brands, presented price increases of around 6 to 8%. This is an increase judged “huge and totally uncorrelated with economic reality”.
-The angry boss of Intermarché
According to the boss of Intermarché, industrial costs linked to the production of products, such as gas, boxes or transport, are lower than last year. This is also the case for the prices of many agricultural raw materials.
And this, like sugar, oil or durum wheat, has decreased. Only a few products, such as butter and cocoa, experienced marked increases. Despite this, major suppliers continue to demand considerable increases.
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The boss of Intermarché Thierry Cotillard questioned this strategy. He then blurted out: “Let national brands assume that their hope […] is to nourish the dividend of shareholders”.
This criticism directly targets the practice of certain major brands which seem to favor their profits and dividends to the detriment of consumers and the efforts of distributors to limit the impact of inflation on in-store prices.
On the other hand, the boss of Intermarché welcomed the requests of the smallest suppliers. The latter proposed much more reasonable increases, with an average of 2.8% compared to 6.4% for the big ones. One thing is certain, the negotiations are proving to be quite complicated.
