Michel Biero (Lidl France) considers the price increases demanded by multinationals “unacceptable”

Guest on BFMTV, Michel Biero criticized the food industry for demanding large unjustified price increases in the context of trade negotiations.

After Intermarché and Coopérative U, Lidl in turn denounces the practices of manufacturers. Barely opened, the commercial negotiations between mass distribution and the agri-food giants are starting “under high tension”, admitted on BFMTV the vice-president of Lidl France, Michel Biero.

“It’s very, very complicated this year. Like every year I would say, but this year particularly because we’ve been taking very significant (price) increases for two years” while there are a lot of raw materials which are on the decline”, affirmed the manager, assuring that his goal is to “lower prices” in 2025.

While he recognizes that certain raw materials such as cocoa continue to see their prices skyrocket, “most” are trending downward. Despite this, “the multinationals that sell these big brand products come (ask) for increases of up to 10%, it’s just unacceptable,” he lamented. For comparison, SMEs “are on requests of 2 to 3%”.

“They come with the greatest opacity”

“What the French need to know is that currently, we only negotiate national brands, the big brands. The private labels which make up 90% of our assortment are negotiated throughout the year. So we have very clear visibility on the cost of raw materials,” continued Michel Biero.

In addition, he assures that multinationals “do not justify” the requested price increases. “They come with the greatest opacity since forever and we must accept these increases if you want them to continue to deliver to you,” continued the vice-president of Lidl France, calling for “urgent” reform of the “law of modernization of the economy which governs negotiations with these major brands and which creates opacity”.

A few days ago, Thierry Cotillard, boss of the Groupement Mousquetaires (Intermarché, Netto…), and his counterpart at Coopérative U, Dominique Schelcher, also deplored the demands for price increases from manufacturers which could go “up to 8 %”. “We have industrialists that I would describe as irresponsible,” said Thierry Cotillard. However, the discussions are far from over since trade negotiations are due to end on March 1.