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System U boss wants to change trading rules to get through price cuts faster

Coffee, wheat, packaging… The prices of certain raw materials are falling at the moment but it is not possible to pass them on to the stores due to the periods of regulated negotiations between distributors and manufacturers in France. This is the observation of the System U boss who reiterates his call to change the rules.

System U President Dominique Schelcher has again called for an end to regulated trade negotiations between manufacturers and distributors. If it were possible to negotiate prices throughout the year, many products could now be offered cheaper in stores, according to him.

Change trading rules

According to him, the culprit is the regulation of negotiations in France. “Today, we are locked into a three-month negotiation period,” he explains.

The boss of the Super U and Hyper U stores wants to remove this fixed negotiation period that would not allow re-discussion of prices at times when it would be justified.

He adds that France is the only country in Europe where this period is frozen.

Wheat, coffee, packaging… These products that are falling

Many products could now be offered cheaper in stores if the rules were changed, he says. Among them, coffee and pasta, but also those whose packaging cost has recently been reduced.

Previous negotiations between manufacturers and distributors have been stormy and tensions do not seem to abate between both links in the food chain while food prices continue to rise, forcing the French to arbitrate or even restrict themselves to enter their budget more tight. .

The latest inflation figures for daily products show an average increase of more than 16% in a year in March.

Author: Olivia Bugault with AFP
Source: BFM TV

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