It’s a bit like the story of the watered sprinkler. In thunderous statements, Michel-Edouard Leclerc clearly accused certain industrialists of taking advantage of the geopolitical situation to artificially inflate their prices and thus participate in the increase in inflation.
Enough to initiate an investigation by the Senate Economic Affairs Commission, which heard dozens of actors. As a result, there is no “mass phenomenon of “suspicious” increases and “widespread attempts by industrialists.”
On the other hand, the large distributors are singled out for “questionable practices” that contribute to rising prices. “Practices that artificially inflate inflation, emanating from certain distributors, have been pointed out by various actors, including the public” such as the General Directorate for the repression of fraud, we can read.
Prices rise but not for suppliers
These practices are difficult to quantify (volume and frequency), the speakers believe, but they go in the same direction: “some distributors applied sales price increases on their shelves even though they had not signed a price increase. ‘Purchase of the product with the supplier’.
“In addition, they deplore a general climate of firmness on the part of the distributors, who clearly refuse to accept the part of the price increases linked to industrial raw materials, and who would unnecessarily prolong the negotiations to “save time”, which would result in in losses for suppliers”, he said.
inconsiderate customers
Big retailers would also take advantage of an anxiety-provoking environment to quietly push through unnecessary price increases.
Distribution players would also continue to practice the usual balance of power with their suppliers. “Some manufacturers also alerted the watchdog group to the fact that distributors would refuse to accept price increases and would knowingly risk breaching the commercial contract, because the supplier would in any event be obliged to continue to deliver the products during the Notice of Expiration.” finished”.
Win in all aspects
However, the large distributors would have agreed, if this scenario were to occur (termination of the contract but maintenance of deliveries during the notice period), to pass on part of the increase in supplier prices. “According to the providers heard, this commitment would be respected unevenly,” warn the senators.
The chocolate example
In his speeches, Michel-Edouard Leclerc took the example of cocoa-based products to denounce the practices of certain manufacturers. “When the manufacturers of cocoa products ask Ukraine for a 15% increase in tariffs on confectionery, on chocolate bars, I’m talking about Nestle, I’m talking about Mars, don’t fuck around. We’re on the other continent. cocoa!” he said.
The senators’ report debunks this example. “A chocolate bar, in fact, does not only contain cocoa, but also milk, sugar, cereals (three products whose price increase is significant), is surrounded by plastic packaging, requires transport time to be transported, etc.” .
Source: BFM TV
