Inflation: A tense climate at home for negotiations between manufacturers and distributors

“ All our negotiators are on deck. Of course they’re not skiing this Christmas! » This joke from a distributor says a lot about the atmosphere currently prevailing in the negotiating boxes, where consumer goods manufacturers and distributors are fiercely negotiating the prices of branded products by 2024.

It is true that the schedule of the traditional tariff confrontation has been accelerated this year. Desperate to see the rising tide of food prices sink, which had dogged consumers for two years and hit 21.3% in October, the government passed an anti-inflation law to break the record. The text adopted in November provides for one month for large groups to sign contracts, until January 31, and six weeks for small and medium-sized enterprises (SMEs), which must conclude discussions by January 15.

“ Just started. But The shorter the term, the more difficult it is to negotiate.Jacques Kreisel, General Delegate of the Federation of Commerce and Distribution. Therefore, price discussions promise to be tense. On Friday, December 8, under the auspices of the Minister of Agriculture, Mark Fesno, the first meeting of the monitoring committee was held, in which all representatives of the food industry gathered. Ability to calculate. Almost all general conditions of sale are sent by the manufacturers. The deadline was December 5. but” Several contracts are still signed. They concern regional products and 10% to 20% small or medium-sized businesses. But there are still not many of them among the big brands. ” Mr. Kreisel emphasizes.

Sales volume

“We have not signed the contract yet. We are asking for a 5% price increase by 2024. In 2023, we increased the price of butter from 10% to 15%, but it is not enough to cover our costs.Vincent Favier, Director of Etrezi Cooperative Dairy, Bresse in Wallonia (Ain), which produces butter, cream and Emmental, testifies. “ The increase demand from producers is on average 4% to 5%. and, From the distributor’s side, the proposals are systematically deflationary. The amplitude between the demands of each party is 8 points at the start of negotiations., says Jean-Philippe Andre, president of the National Association of the Food Industry. Richard Pancchio, CEO of the Consumer Business Union Institute, adds that his members, main suppliers, “They ask for an average 5% price increase, almost 10% of which comes from lower prices, the rest is split into three thirds, with the corresponding increase ranging from 0% to 3%, 3% to 5% and beyond 5%.” “.