FRENCH SUPERMARKETS WILL DEMAND FOOD GROUPS CUT PRICES BY UP TO 5%

Supermarket groups in France could demand price cuts of 2% to 5% from food manufacturers in negotiations set to kick off soon, the head of retailer Les Mousquetaires told lawmakers on Wednesday in a roundtable with executives. French retailers have criticised consumer goods giants like Unilever and Nestle for price hikes they say are unjustified. The government has also put pressure on the consumer goods makers to cut prices.

Lower raw material and energy costs mean producing food and other consumer goods is less expensive, Les Mousquetaires President Thierry Cotillard said, and prices agreed in negotiations should reflect that. "We should probably be able to demand that the big (consumer goods) groups cut prices by between 2% and 5%," he said. Cotillard said the group's business in Portugal had managed to negotiate lower prices with consumer goods firms, because price talks there are not restricted to an annual window. Les Mousquetaires operates in Portugal under the Os Mosqueteiros banner.

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