France Warns Big Food Companies of Crackdown on Bloated Margins

French Finance Minister Bruno Le Maire said large food companies are continuing to boost their margins and called on them to renegotiate with retailers in the coming weeks to pass on lower costs or face tougher measures from the government.

(Bloomberg) — French Finance Minister Bruno Le Maire said large food companies are continuing to boost their margins and called on them to renegotiate with retailers in the coming weeks to pass on lower costs or face tougher measures from the government.

“Today, we’re seeing wheat prices come down and shipping costs drop,” Le Maire said on BFM TV on Tuesday. “I’d like to see that in shopping baskets, too.” 

If negotiations haven’t restarted by the end of May, Le Maire said he would call both sides to a meeting at the Finance Ministry, adding that the government had previously found a way of clawing back excess profits from energy companies.

“I will look at all solutions available to get big industrial companies to return to the negotiating table and pass on the reduction in production costs,” Le Maire said.

The government won’t let major industrial groups make unwarranted margins at the expense of consumers at a time when wholesale prices are falling, he added.

–With assistance from Ainhoa Goyeneche.

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