Until the end of February, manufacturers and major distributors negotiate contracts for products sold. Discussions that could have an impact on prices.
The arrival of “Red March”? Each year, major distributors and their suppliers enter into discussions to negotiate product contracts. put up for sale. “This is an opportunity for a brand to explain to a distributor what range of products he is going to buy from it and at what price”explains Emmanuel Fournet, analytical director at NielsenIQ, to France Blue. This is the case for branded products, but also for distributors when they are manufactured in the same factories. From December 1 to March 1, the two parties fuel the negotiations which will determine the products that consumers will be able to find on the shelves. and at what price.
This year, more than ever, the discussions are heated. For nearly a year, inflation has not stopped increase the price of everyday products. Increases in the prices of raw materials and energy for suppliers come up against the desire of distributors to display the lowest prices. “Manufacturers’ margins are already a little lower than they were”, reveals Emmanuel Fournet. For their part, suppliers would also be “ready to sit down” on “part of their margins to keep their customers”. As for this famous “red march”the expert estimates that “Where we took one point of inflation each month on food products, we risk taking 3 in March”.
What’s next after this ad
A controversial new law
The issue of negotiations is currently at the heart of debates in Parliament. In effect, a new law, already adopted by the National Assembly, aims to force distributors to accept the prices and conditions of suppliers in the event of no agreement if they wish to market the products concerned. A law that could provide a response to exceptions during these negotiations. As for prices, these could stabilize during the year 2023, but with the rebounds known during the last year, the time is for caution. in forecasting.