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Distributors obtain a small price increase from manufacturers

This confirms, once again, the end of the inflationary crisis.

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Distributors obtain a small price increase from manufacturers

This confirms, once again, the end of the inflationary crisis. In 2024, the prices negotiated between distributors and manufacturers for national brand products resulted in an average increase of “less than 1%”, according to the agricultural commercial relations mediator. This is far from the initial demands of manufacturers (4.5% demanded on average, after 14% in 2023).

However, at the end of January, at the end of the negotiations, the Federation of Commerce and Distribution (FCD) as well as Ilec - which represents large industrialists - estimated that the increase in negotiated prices would be 2% to 3% between the distributors and agri-food behemoths in 2024. “At the time of negotiations, there is a form of absolute business secrecy. The figure reflected what the brands wanted to communicate,” explains a distributor. Communication may be influenced by the context: in the midst of an agricultural crisis, it was no longer fashionable to display quasi-stability in prices, synonymous with pressure on farmers' incomes.

Some contracts were also concluded after the January 31 deadline, which probably had an impact on the final balance sheet. Just like the lower prices negotiated with industrial SMEs. “In their communications at the time, distributors also sought to prepare the ground for on-shelf price increases. They have internal costs that they must pass on,” says an industrial representative. What we refute on the side of mass distribution. Large stores are free to pass on or not the prices negotiated with manufacturers on the prices paid by customers. Moreover, currently, prices are falling slightly on the shelves.

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