danone and Kellogg are among 75 consumer goods companies French authorities have asked to lower prices, according to a list seen by Reuters and which sources said is being used by the government for the initiative.
Economy Minister Bruno Le Maire said on June 9 that he had managed to get some companies to commit to cutting prices on hundreds of products, under threat of financial sanctions if they did not.
The French government is using the list, drawn up by a think tank, as a reference for the project, according to three sources familiar with the matter. The French economy ministry said it could neither confirm nor deny the list.
Unilever, maker of Hellmann’s mayonnaise and Knorr soup, told Reuters on June 9 that it was one of the companies included in the government plan. French media recently identified others, including Coca-Cola, Mondelez, and Nestlé.
However, the list includes a wide range of food manufacturers, such as the French agricultural group Avrilas well as some of the largest beverage manufacturers in the world, including Pernod Ricard.
danone and Nestle declined to comment, while Coca-Cola, Mondelez and ABI brewer did not respond to a request for comment. Pernod Ricard referred Reuters to its trade body.
kelloggs It said in a statement that it could not comment on talks between the government, trade associations and retailers, but that its annual round of negotiations had concluded. The retail prices of its products are set exclusively by retailers.
The French government move, if successful, could force some of the companies that have seen price increases of 10% or more in recent months to reopen price negotiations with major retailers, putting pressure on their profit margins.
Source: Gestion
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