The Limited Times

Now you can see non-English news...

Final adoption in sight for the law strengthening manufacturers against supermarkets

2023-03-22T05:46:17.384Z


The measures tackle the “structural imbalance” between suppliers and big buyers like Leclerc, Carrefour or Intermarché, whose price war is pulling margins down.


The bill strengthening manufacturers in their tense negotiations with large retailers should be definitively adopted on Wednesday by Parliament, to the chagrin of brands which ensure that consumers will pay the price.

After a compromise between deputies and senators, largely validated Tuesday in the Senate, it is the turn of the Assembly to decide in the afternoon on the text carried by the Renaissance deputy Frédéric Descrozaille and fought tirelessly by the media Michel -Edouard Leclerc.

These measures tackle the “

structural imbalance

” between, on the one hand, the suppliers, and, on the other, the big buyers like Leclerc, Carrefour or Intermarché, whose price war is dragging the margins down.

The text wants in particular to dissipate the “

legal vagueness

” existing in the event of failure of the annual commercial negotiation, scheduled from December to March for the products which fill the shelves.

Currently, if suppliers and distributors do not agree, their contract is not interrupted.

A favorable situation for supermarkets, which can continue for several months to order products at the old price, even though the supplier may be faced with an increase in its production costs.

The text provides in the event of failure of the negotiation, on an experimental basis, that the supplier has the choice: to interrupt deliveries from stores or to apply a " classic

" notice of rupture, taking into account market conditions, such as

inflation .

Read alsoInflation: this bill which could reinforce the rise in prices in supermarkets

“Penalized consumer”?

The agreement sealed in the Joint Joint Committee (CMP) also extends until 2025 the experimentation of the supervision of the "

threshold of resale at a loss

" for food products.

Fresh fruits and vegetables, initially concerned, were excluded as the text was examined.

Consumer associations demanded the suspension for all food products of this criticized measure, which expired in April.

It obliges supermarkets to sell food products at least 10% more expensive than the price at which they bought them.

Another point of tension: the 34% cap on " shock

" promotions

on non-food products, deemed "

irresponsible and inflationary

" by the employers' federation of large retailers, the FCD.

"

The consumer will once again be penalized: these products (detergent, scouring powder, deodorant, dishwasher tablets, shampoo, combs, and other curlers) are among the most expensive in customers' shopping carts

" , thundered Tuesday on his blog the president of the strategic committee of the Leclerc centers, Michel-Edouard Leclerc.

But the deputy Descrozaille is annoyed with AFP: "

He must stop making everyone believe that he is elected by consumers

".

Because "

people don't know that when they come out of a Leclerc store with a 5 euro discount, it's not Leclerc's generosity: it's been paid for by the suppliers

”.

The Minister of the Economy Bruno Le Maire said he was in favor of distributors being able to “

make promotions not just at 34% on shampoos, hygiene products, detergent products but up to 50%

”.

Deputies and senators, however, maintained the ceiling they had agreed to, but an amendment adopted Tuesday in the Senate, and which will also be presented on Wednesday in the Assembly, concedes an entry into force postponed to March 1, 2024.

Another provision decried by the major brands plans to subject negotiations with European purchasing centers to French regulations, when the products concerned are intended for the French market.

A response to the creation by certain distributors of power plants abroad aimed at negotiating, according to the deputy Descrozaille, with "

legal provisions (...) less protective of the interests of French farmers and of products made in France

".

To protect farmers, the text submitted to the vote on Wednesday also provides for “

non-negotiability of agricultural raw materials

” in products sold under private label.

Source: lefigaro

All business articles on 2023-03-22

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.