This is the little music that has been rising in recent weeks. Contrary to what the government has been demanding for many months, the much-hoped-for price reductions on food products may not materialize on the shelves in 2024. Commercial negotiations between distributors and manufacturers will in any case officially open this Friday 1st December. And as required by the new law adopted by Parliament on November 14, this period of discussion is now shortened. For manufacturers with an annual turnover of less than 350 million euros, the deadline is January 15. For others, it runs until January 31.
7% increase at Coca-Cola
But what’s the point of moving forward with commercial negotiations if the consumer doesn’t come out a winner? It was Coca-Cola that first lit the fuse in mid-November, when its boss announced an upcoming 7% price increase for its famous soda bottles. The following week, it was Dominique Schelcher, director of the independent brand Système U, who prepared people’s minds: “On average, the requested increase is 5%.” Finally, on Tuesday November 28, it was the turn of Jean-Philippe André, president of Ania – the agri-food industry lobby – to drive home the point, ensuring that prices would not fall.
Nothing has been decided yet, but the first returns do not bode well for the future. A major disavowal for the government which tried at all costs to influence the talks. The Minister of the Economy Bruno Le Maire may have banged his fist on the table and threatened, a few months ago, to reveal the list of industrialists who were not playing the game, nothing has happened.
The standoff therefore seemed lost in advance. However, the bill was designed so that manufacturers could more quickly pass on the reduction in part of their production costs in product prices. Here again, the executive seems to have made a mistake. Despite the negative signals, the office of the Deputy Minister of Commerce, Olivia Grégoire, sees it as “the game of negotiations” and says it is confident of obtaining price reductions. He plans to meet in 2024 to take stock. A game of negotiations which nevertheless remains an opaque system. Little information filters through and it remains difficult to influence the final result, including for the State itself. On arrival, it is the consumer who toasts.