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- French grocery chain Carrefour is pulling PepsiCos sodas and snacks from its shelves over higher prices.
- Carrefour is putting up signs informing customers of "unacceptable price increases," Reuters reported.
- PepsiCo said that price increased helped increase its profit in its latest earnings report.
PepsiCo, one of the world's biggest food companies, reportedly wants to raise prices so much that one grocery store chain in France won't sell its products anymore.
Soon shoppers at French chain Carrefour won't be able to buy Lay's chips, Pepsi soda, or other products from the company, Reuters reported on Thursday. Shelves with PepsiCo products will carry signs saying the grocer won't be selling the items anymore due to "unacceptable price increases," a spokesperson for the grocery chain told Reuters.
"We've 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," a PepsiCo spokesperson said. Carrefour did not immediately respond to Business Insider's request for comment.
Carrefour's move is among the more aggressive retailers have taken to fight back against grocery price increases. Last year, the company started labeling products affected by "shrinkflation" — when manufacturers reduce the size of a product and sell it for the same price or more, Reuters reported.
Higher prices helped push PepsiCo's profits higher during last year's third quarter, the company said in its latest earnings report in October. Operating profit at the company rose 14% globally.
Around the world, food inflation has surged for many basics, from soda to eggs.
In the US, grocery price increases have eased over the last few months. Executives at Kroger, the nation's largest supermarket operator, said in November that they expect food inflation in the "low-single-digit range." In mid-2022, food inflation rose by up to 9%.
Updated January 3, 2024: This story has been updated with comment from PepsiCo.