large retailers are up against a bill that could increase prices

by time news
The purpose of the law is to rebalance the annual negotiations between distributors and agri-food manufacturers to the benefit of the latter. JEAN-MICHEL DELAGE/Hans Lucas via AFP

The bill “aiming to secure the supply of French people in consumer products” creates tensions between distributors and agri-food manufacturers, in a climate strained by inflation.

The bill “aiming to secure the supply of French people with consumer products” arouses passions. Tabled by the deputy Frédéric Descrozaille (Renaissance) and examined this Monday in the National Assembly, it aims to rebalance the annual negotiations between distributors and agrifood manufacturers for the benefit of the latter. The subject is all the more burning as these negotiations are currently taking place in a climate strained by inflation.

The text provokes an outcry from the distributors, who split a press release this Sunday. “Usually competitors, but here united in an unprecedented way, Auchan, Carrefour, Casino group, Cora, E.Leclerc, Intermarché, Lidl, Netto, Système U denounce a proposal which aims to prevent commercial negotiation for the benefit of very large manufacturers, and which will dramatically and sustainably fuel inflation.»

They are above all headwind against Article 3, which provides that in the event of failure of the negotiations, the tariff proposed by the manufacturers is applied during the notice period preceding the breach of the contract. “Retailers will be forced to accept the prices imposed on them by these multinationals, including increases of more than 30%“, they fear.

Frédéric Descrozaille refutes this analysis this Monday morning on Franceinfo: “The debate completely hovered over something that was wrong. There was never any question of a price increase. If the negotiation fails, the two parties will no longer be bound by any obligationand will return to the supplier’s price.

The MP has just introduced an additional period of one month for an agreement under the aegis of the mediator. At the end, if the negotiations are unsuccessful, the industrial tariff could apply. “In this case, manufacturers have the option of stopping delivery, he believes. No one has an interest in severing the business relationship. To those who speak receipts, I answer jobs and wages.” For the executive,the balance [de cette loi] not yet found“, indicated this Monday Bruno Le Maire on BFM TV«as it is, the intention is good but the proposal needs to be reworked».

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