Mass distribution: dereferencing, the ultimate negotiation weapon

On March 1, 2023, the traditional negotiations between distributors and suppliers came to an end. This year, they were particularly strained due to the high inflation which is currently weighing on the French market. This tense showdown even made several consumer goods experts fear that a red month of March in terms of price increases could occur.

In these confrontations, however, the major retailers have leverage to take advantage of the situation. As Europe 1 reports, delisting is one of these negotiation methods. Totally legal, it is however not without consequences on the daily life of consumers.

When a disagreement on the price between the supplier and the distributor takes place, the latter can thus threaten to no longer offer the product on the shelves of its supermarkets. This is intended to push the supplier to agree to lower its price but can also lead to a breach of contract.

In this case, the distributor then finishes selling the stocks it has, sometimes for several months, before the product disappears from the supermarkets. This happens every year. For example, it is for this reason that Evian, Volvic and Badoit water bottles disappeared from the shelves of Intermarché in September 2022, after a disagreement between the brand and Danone.

“Dear customers, the Danone company wants us to accept price increases which seem unjustified to us. Certain products from the Danone range are therefore no longer offered by our store”, the supermarket had then specified to the musketeers.