Car4 and Pepsi are in a soda standoff.

Hello and you're listening to the Marketplace Morning Report live from the BBC World Service.

I'm Leanna Byrne and a very good morning to you.

Grocery chain, Car4, is telling customers in four

European countries it will no longer sell PepsiCo products because they have

become too pricey. I'm joined by the BBC's Luke Wilson. Hello Luke.

Hi Leanna.

And now Luke, do we know how much prices we're going to go up by for them to make this decision?

We don't. A Carfour spokesperson has described the price increase as unacceptable but we don't know the specific figures.

What we do know is that signs have gone up in Carfor stores all over Europe saying this and

Carver is huge. There are 9,000 stores across France, Spain, Italy, Belgium

so a really big impact here. And just remind us what brands does this effect?

Yeah it's not just Pepsi.

Again, Pepsi-Go is a huge group and it owns brands like Lace Crips, Cheetos, Doritos, Seven Up Quaker

cereals, a long list of everyday brands that have now disappeared from these stores all over Europe.

Yeah for sure and I mean it's really unusual so what in the French economy has made them come to this decision?

Yeah it's pretty unusual across Europe, but in France specifically, the government actually

regulates retail pretty strongly.

It says supermarkets can only negotiate prices once a year with producers to try and keep those prices set and not see any hikes.

The government has actually asked them to sort those negotiations two months early this year to try and get inflation down because food inflation is pretty

persistent in France. We're looking at around 7% on average at the moment.

And obviously this is not good for Pepsico. Has it said anything?

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