The French Senate has accused the country’s largest grocers of engaging in “predatory practices” against manufacturers and farmers.
In its report, published yesterday (21 May), a Senate commission highlighted an “unbalanced distribution of value in the food chain”, which it said disadvantages manufacturers and farmers
The assessment, which looked at the profit margins of manufacturers and retailers over a six-month period, said it had found “the balance of power between most manufacturers and large retailers is now skewed in favor of the latter”. The report was criticised by France’s retailers. The Fédération du commerce et de la distribution (FCD), the principal retail trade body in France, said the findings are “biased” and “completely disconnected from economic reality”.
Speaking to reporters yesterday (21 May), Senate member Antoinette Guhl said: “We have observed the existence of predatory practices by distributors on both industrialists and farmers.” According to the Senate, France is dominated by four major retail chains: Leclerc, Carrefour, Intermarché and Coopérative U. The report also mentioned three “hyper-dominant” buying groups that are used by French retailers: Concordis, which is used by Carrefour and Coopérative U, Aura Retail, used by Auchan and Casino and Leclerc. The Senate carried out its investigation between December and May, conducting 189 hearings with members of agricultural unions, sales directors, buying managers and the local competition authority, among other representatives.