Marmite maker accused of not co-operating with food price curbs in France
The French finance minister has accused multinational firms – including one based in the UK – of not “co-operating” with measures to help curb stubbornly high food prices in the country.
Bruno Le Maire hit out at Unilever, best-known for Marmite and Magnum ice creams, Kit-Kat maker Nestle and PepsiCo after claiming a victory in his campaign to bring down the cost of everyday products following talks with retailers and suppliers.
He said two days of discussions with 75 major players had resulted in commitments to freeze or reduce the cost of 5,000 items.
Food inflation in France, like in the UK, is running well above 10%.
It is largely a consequence of higher energy and other commodity costs since Russia’s invasion of Ukraine.
The new meeting was ordered after the minister admitted less than half the 75 retailers and suppliers he had struck a similar deal with back in June had actually implemented change.
Since then, there has been growing evidence that consumers across France have shied away from essential purchases in a bid to save money amid wider cost of living expenses.
None of the three firms who Mr Le Maire said were not playing ball, were yet to comment. Unilever declined to provide a statement.
The company had told investors earlier this year that it expected price hikes across its global ranges to have ended by the second half of 2023.
Last month it revealed a surge in profits for the first half of its financial year though its margins were below pre-pandemic levels.
The UK’s supply chain is under scrutiny from the Competition and Markets Authority.
The regulator is seeking evidence of profiteering after clearing supermarkets of ripping their customers off.
“The large multinationals could do much more,” Mr Le Maire said.
He added that retailers which did not pass on price cuts by suppliers to their customers in France could face sanctions.
An executive from a top drink company with knowledge of the negotiations told the Reuters news agency it was unclear whether any of the companies involved in the latest talks would actually cut prices.
“No one is willing to say ‘I am going to reduce my prices’ because the government is saying so,” he said.