From Fortune:

The battle between Europe’s supermarkets and major suppliers is escalating over the issue of “shrinkflation.” Some of the biggest chains appear to be divided on the best approach to strongarm companies like Unilever and PepiCo into reducing prices.

In France, retailer E.Leclerc has stood its ground, vowing to continue stocking PepsiCo products despite the rise in prices. Meanwhile, rival chain Carrefour has already pulled snacks like 7Up and Doritos from its stores in multiple countries.

Supermarket chains have been in negotiations with food suppliers such as PepsiCo and Unilever over attempts at shrinkflation, where suppliers reduce the sizes and contents of their items without reducing prices. Different supermarkets are handling negotiations differently, with some taking a more passive approach and others escalating tensions.

Major suppliers’ pricing strategies have come under scrutiny lately, with recent research suggesting that profiteering was a major driver behind recent price rises. As inflation falls back towards Central Bank targets of 2%, pressure is increasing on suppliers to lower the prices of their products.



Read more: France’s biggest supermarket won’t follow rival by banning Pepsi