NSRGY - France pressures food companies to lower prices

2023-06-23 10:56:42 ET

Kellogg ( K ), Unilever ( UL ), Coca-Cola ( KO ), Nestle ( OTCPK:NSRGY ), Mondelez International ( MDLZ ), and Danone ( OTCQX:DANOY ) are among 75 consumer goods companies in France that have been asked to lower food prices due to the raw materials costs falling sharply.

France Finance Minister Bruno Le Maire said earlier in the month that the government secured a pledge from some companies to cut prices on hundreds of products under threat of financial sanctions. The French government is reportedly using a list produced by a research group as a reference for the cost-lowering initiative.

Kellogg ( K ) said in a statement it could not comment on discussions between the government, trade associations and retailers. Furthermore, the food company said retail prices were set solely by the retailer. Earlier in the week, food retailer Carrefour SA (CCRFFY) initiated price cuts of about 10% on average on about 500 products.

The inflation rate in France cooled to a one-year low of 6.0% in May.

More on food stocks:

• Packaged food stocks will face tricky sales growth comparisons after a year of inflation
• Food prices are still high - will these stocks benefit?
• Seeking Alpha's Quant Rating across the food sector

For further details see: