Global supermarket chain Carrefour will stop selling PepsiCo (NASDAQ:PEP) products in its stores in France, Belgium, Spain and Italy over price increases for popular items like Lay’s potato chips, Quaker Oats, Lipton tea and its namesake soda.
The French grocery chain said it pulled PepsiCo products from shelves in France on Thursday and added small signs in stores that say, “We no longer sell this brand due to unacceptable price increases.”
The ban also will extend to Belgium, Spain and Italy, but Carrefour, which has 12,225 stores in more than 30 countries, didn’t say when it would take effect in those three countries.
PepsiCo said in a statement that it has “been in discussion with Carrefour for many months and we will continue to engage in good faith in order to try to ensure that our products are available.”
The company behind Cheetos, Mountain Dew and Rice-A-Roni has raised prices by double-digit percentages for seven straight quarters, most recently hiking by 11% in the July-to-September period.
Its profits are up, though higher prices have dragged down sales as people trade down to cheaper stores. PepsiCo also has said it’s been shrinking package sizes to meet consumer demand for convenience and portion control.
“I do think that we see the consumer right now being more selective,” PepsiCo Chief Financial Officer Hugh Johnston told investors in October.
PEP shares retreated one dollar Friday to $170.47.
