Food Industry in France Agrees to Voluntary Price Reduction


An extensive series of meetings headed by Bruno Lemaire, the Minister of Finance of France, with food manufacturers and retailers has resulted in a voluntary decision to reduce or freeze prices on food staples.  The agreement includes approximately 5,000 items representing 25% of all SKU's.  The agreement follows a previous arrangement negotiated with Unilever, Nestle and Pepsi Co to reduce prices on 1,500 products.  The comprehensive agreement also includes a price reduction for basic commodities including vegetable oils that have contributed to inflation.


The Government of France will monitor compliance through agencies responsible for consumer affairs and competition. Stock-outs and shortages usually follow agreements to cut prices following either enforced government edicts or as in thus case, ‘jawboning’.