- French Finance Minister Accuses Multinational Corporations of Non-cooperation
- Efforts to Reduce Food Prices in France
- Concerns Over Rising Living Expenses and Consumer Behavior
Bruno Le Maire asserts he has reached a second agreement with retailers and their suppliers to reduce food prices, but the majority disregarded the June directive.
The French finance minister has accused multinational corporations, including one based in the United Kingdom, of failing to “cooperate” with efforts to reduce the country’s persistently high food prices.
Bruno Le Maire lashed out at Unilever, which is known for its Marmite and Magnum ice creams, Kit-Kat producer Nestle, and PepsiCo after claiming a victory in his campaign to lower the prices of everyday goods following discussions with retailers and suppliers.
Two days of discussions with 75 significant players resulted in pledges to freeze or reduce the price of 5,000 items, according to him.
In France, as in the United Kingdom, food inflation is well above 10%.
Since Russia invaded Ukraine, energy and other commodity prices have increased significantly.
Instigating the new meeting was the minister’s admission that less than half of the 75 retailers and suppliers with whom he had reached a comparable agreement in June had implemented change.
Since then, there is mounting evidence that French consumers have turned away from essential purchases to save money in the face of rising living expenses.
The three companies that Mr. Le Maire claimed were not cooperating have not yet commented. The company Unilever declined to issue a statement.
The company informed investors earlier this year that it anticipated global price increases to cease by the second half of 2023.
It reported a profit increase for the first half of its fiscal year last month, although its margins were below pre-pandemic levels.
Competition and Markets Authority is examining the supply chain in the United Kingdom.
The regulator is looking for evidence of profiteering after clearing supermarkets of customer exploitation.
Mr. Le Maire stated, “The large multinationals could do much more.”
He added that retailers who fail to pass on price reductions from their suppliers to their French consumers could face sanctions.
An executive from a leading beverage company with knowledge of the negotiations told Reuters that it was uncertain whether any of the companies involved in the most recent negotiations would reduce prices.
“No one is willing to say, ‘I’m lowering my prices because the government says so,'” he stated.
