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New French Law May Put End To Nutella-Like 'Shock Sales'

Published on Jul 12 2018 2:00 PM in Retail tagged: France / Intermarché / Groupe Casino / Nutella

New French Law May Put End To Nutella-Like 'Shock Sales'

The clock might be ticking for deep discounting on popular brands in France, as the government is putting in place measures to prevent situations like the so-called 'Nutella riots' in late January, when Intermarché's cut-price sale of the popular Ferrero product created a shopping frenzy.

A provision aimed at such extreme sales has subsequently been added to new food and drink legislation.

Fair Treatment Of Producers

The proposed bill would introduce minimum prices for products and come into effect on 1 March, 2019. It would also impose a resale value of at least 10% above the original price paid to the producer.

government-ordered report released in 2017 in France found that prices paid to producers simply did not cover the cost of production.

Michel-Edouard Leclerc, CEO of Leclerc, warned in an interview with local radio station Europe 1 that if measures suggested by the bill were implemented, it could actually cost French consumers €2 billion in increased costs.

Finalising Text

While versions of the new law have been approved by the National Assemby and the Senate, the Senate version has omitted the government proposition of having a minimum pricing provision, as pointed out by French magazine LSA.

The texts will now be debated by a joint committee comprised of members from both chambers in order to agree on a final version of the legislation.

French retailer Groupe Casino is set to celebrate its 120th anniversary from 17 to 29 July, promising discounts of up to 120% on selected products in a major promotional drive.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.

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