French retailer Système U removes PepsiCo products off shelves amid price row

French retail cooperative Système U has removed some PepsiCo products from its shelves after the US food and beverage giant allegedly demanded a price rise of over 20 percent, which the supermarket group saw as unjustified.

According to Système U CEO, Dominique Schelcher, they were not satisfied with PepsiCo’s explanation for the scale of price rises, which did not match their own pricing analysis.

Schelcher pointed out that as raw-material prices have begun to fall, consumers expected them to lower their prices.

After the two firms disagreed over the prices, they compromised by allowing price hikes on a few products and removing PepsiCo’s remaining products off the shelves.

The French government and food retailers have agreed to set the “lowest possible price” on a range of products.