French Food Industry Signs Charter to Ease Price Talks Affecting 67 Million Consumers

French trade associations representing food manufacturers and retailers have signed a new charter to guide their annual price negotiations, aiming to reduce tensions that have marked these talks in recent years. The agreement was reached as this year’s round of commercial negotiations began on December 1, a process that will set the prices of branded grocery products on supermarket shelves across France for the coming year.

The charter was signed by six major industry groups: the Association Nationale des Industries Alimentaires (ANIA), La Fédération du Commerce et de la Distribution (FCD), Pact’Alim, L’Institut de Liaisons des Entreprises de Consommation, Fédération des Entreprises et Entrepreneurs de France, and La Coopération Agricole. According to France’s Ministry of Agriculture, the document commits all parties to promote “a calm climate” during negotiations. The ministry said this would be achieved through principles of dialogue, respect for professional constraints, and efforts to prevent disputes.

One of the key points in the charter is a commitment to provide small and medium-sized enterprises (SMEs) with “differentiated treatment.” The document calls for negotiations with SMEs to be completed by January 15, ahead of the broader March deadline for larger companies. It also recommends that no more than five negotiation meetings take place with each SME, in an effort to streamline the process and reduce pressure on smaller businesses.

The charter also encourages increased sales of fresh produce and improved transparency for consumers regarding the origin of products. These measures are intended to support supply chains and contribute to what officials describe as France’s “food sovereignty”—the ability of the country to control its own food production and supply.

Annie Genevard, France’s Minister of Agriculture, Agri-food and Food Sovereignty, welcomed the agreement. In a statement, she said that trade negotiations between suppliers and distributors have a significant impact on the entire agricultural and agri-food value chain. She emphasized that reducing tensions in these talks was essential for maintaining stability in the sector and supporting national food security.

Despite the signing of the charter by industry representatives, it has not yet received formal approval from the French government. French newspaper Le Monde reported that government endorsement is still pending. The annual negotiation period in France is unique compared to other European countries, where price talks often occur more frequently or on a rolling basis. In France, these discussions are concentrated into a three-month window each year, which has historically led to high-stakes disputes between retailers and manufacturers over pricing.

Last year, in response to rising consumer prices and public pressure, France passed a law requiring manufacturers and retailers to begin price negotiations earlier than usual. The deadline was moved forward from March to January 2024 in an effort to speed up price reductions on consumer goods.

Judith Jiguet, general delegate of the FCD, commented on the new charter in a post on LinkedIn. She described it as a pragmatic step forward for the sector and stressed the importance of ongoing dialogue throughout the negotiation process. Jiguet said that while the charter is only a first step, it represents meaningful progress toward more constructive relations between suppliers and retailers.

The outcome of this year’s negotiations will be closely watched by both industry participants and consumers. Prices agreed upon during these talks will affect grocery bills across France at a time when inflation remains a concern for many households. The government has indicated it will monitor implementation of the charter as negotiations continue over the next three months.