Carrefour, a prominent French supermarket chain, has announced plans to attach labels to products sold in its stores, cautioning shoppers about a practice known as "shrinkflation". This move is seen as a response to major food producers who have been accused of taking advantage of inflation for their own gain.
Starting from next week on Monday, Carrefour will label all products that it claims to be practicing shrinkflation. Shrinkflation refers to the reduction in the size of a product without any corresponding changes to the recipe or packaging, while the price charged by the supplier increases. The labels, printed in bright orange and measuring approximately five square inches, will also inform consumers that Carrefour is devoted to renegotiating the price of the identified products.
According to Carrefour, some examples of products that will be labeled as being affected by shrinkflation include Nestle's Dolce Gusto Grande Intenso coffee capsule, which has experienced an 8% price increase alongside a decrease in volume. Lay's potato chips and Lipton ice tea, both produced by PepsiCo, as well as Amora mayonnaise from Unilever, are also among the products listed.
Carrefour's Chief Executive, Alexandre Bompard, believes that this initiative will provide consumers with the "most reliable information possible". He strongly emphasizes that shrinkflation is an "unacceptable practice".
At the time of writing, Nestle, Unilever, and PepsiCo have not yet commented on Carrefour's labeling strategy. These three companies are globally recognized food giants, manufacturing a wide range of popular consumer food and beverage brands. Throughout the year, all three companies have stated an increase in prices in numerous markets to offset declining volumes. The higher prices have successfully bolstered their revenue and safeguarded profit margins as inflationary pressures persist.
Carrefour Takes Action Against Shrinkflation
Carrefour, France's second-largest retail chain, has announced a new labeling plan in response to the government's proposed legislation on shrinkflation. Finance Minister Bruno Le Maire has criticized the practice, describing it as "a swindle" and "scandalous." The upcoming law will require food producers to clearly indicate products that have reduced content while keeping the same packaging.
Food inflation continues to be a contentious issue in France. Although price increases have slightly slowed compared to last year, they still remained in the double digits as of August. President Emmanuel Macron has indicated that food giants are making excessive profits. In response, the government has already introduced some price limits in supermarkets, and Finance Minister Le Maire has announced plans to accelerate price renegotiations between food producers and grocers.
Carrefour's proactive approach sends a clear message that they prioritize consumer interests over the profits of food industry players. This move positions them as a leader in promoting transparency and fair pricing in the retail industry.
Photo by Remy Loz on Unsplash
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