CAC 40-listed French retailer Carrefour (FR:CA) has patched things up with the U.S.-based PepsiCo, Inc. (NASDAQ:PEP), bringing the beverage giant’s products back on its shelves. As reported by the Wall Street Journal, both companies reached an agreement yesterday for reintroducing PepsiCo products to stores in France. However, the two companies are still negotiating the return of PepsiCo products to the stores in Belgium, Italy, Poland, and Spain.
Carrefour shares were down by 0.063% on Wednesday, while PepsiCo stock lost 1.03%.
Carrefour operates a variety of supermarkets, convenience stores, and hypermarkets across its network.
End of the PepsiCo-Carrefour Saga
The PepsiCo-Carrefour conflict emerged in early January when Carrefour announced it would cease restocking PepsiCo products due to the beverage and snack food company’s unreasonable price hikes. As a result, it notified its customers of its decision to halt the sale of items such as Pepsi, Lay’s chips, and 7UP in around five countries in Europe, impacting around 10,000 stores.
Interestingly, in 2023, Carrefour initiated a “shrinkflation” campaign, labeling products that have reduced in size while their prices remained the same or increased.
PepsiCo has implemented multiple price hikes since the pandemic, aimed at mitigating higher costs stemming from supply chain disruptions and stubborn inflation. Consequently, it faced backlash from Carrefour, which emerged as one of the most proactive retailers in challenging major food companies on pricing issues. Since then, these parties have engaged in negotiations for new agreements amid pressure from the French government, urging suppliers to collaborate with retailers in addressing the soaring food prices.
Is PepsiCo a Good Stock to Buy?
On TipRanks, PEP stock has been assigned a Moderate Buy consensus rating based on 17 recommendations, of which 11 are Buys. The PepsiCo share price target is $190.65, which is 12.4% above the current price.
Is Carrefour a Buy or Sell?
As per the TipRanks consensus, CA stock has received a Moderate Buy rating, backed by four Buy and four Hold recommendations. The Carrefour share price target is €18.91, which is 18.3% above the current trading levels.
