French distributors highlight margin disparities

French distributors have criticized the significantly higher margins of multinational suppliers ahead of annual commercial negotiations, citing a study by the French firm Asterès for the Federation of Commerce and Distribution (FCD). The study shows that major multinational companies supplying the retail sector achieved net margins nearly four times higher than the average of the French agro-food industry between 2017 and 2025.

Multinationals outperform smaller businesses

The study reveals that these multinationals had an average net margin of 13%, compared to 3.5% for the entire French agro-food industry between 2018 and 2024. This gap highlights the financial disparity between large multinational corporations and smaller businesses operating in the same sector.

Critics say multinationals obscure differences

Judith Jiguet, general director of the FCD, stated that the industrial block is often presented as a homogeneous entity, but the study shows it is a heterogeneous group. She accused the large companies of hiding behind smaller ones to promote the idea that "we are all doing badly, we cannot invest" and emphasized the need to hold them accountable for their responsibilities and strategic choices.

Multinationals prioritize shareholders over investment

The study notes that between 2022 and 2025, during an inflationary crisis, the analyzed multinationals returned 94% of their net profit to shareholders. This indicates that the listed multinationals, suppliers of the retail sector, are oriented towards shareholder remuneration rather than investment.

Study limited by data availability

The study focused on 33 companies out of the 53 multinationals with which the retail sector negotiates annually, as the other 20 could not be studied due to a lack of data. This limitation may affect the completeness of the findings but still highlights a significant trend within the sector.

Negotiations set for early December

Every year, from December 1st to March 1st, supermarkets and food suppliers conduct negotiations that determine the prices on the shelves, excluding retailers' private labels, meats, fresh fruits, and vegetables. A preparatory meeting between manufacturers and distributors is scheduled for today.

FCD demands changes before participation

The FCD stated last week that it would not participate in negotiations as long as two fundamental requirements have not been recognized and shared by all: differentiated treatment for SMEs and transparency on the costs of agricultural raw materials. According to the FCD, multinationals account for nearly 75% of commercial negotiations in terms of value.