Nestle, Danone Price Rises To Put Them Under France's Inflation Scanner: Report

Product prices of food and beverages manufacturers Nestle S.A.NSRGY NSRGF and Danone DANOY have reportedly risen by more than 10% this year in France, putting them under the inflation scanner of the country.

The price hike has potentially pressured the companies to renegotiate with French retailers, Reuters reported citing data citing relevant data pertaining to the issue.

On June 9, France's Finance Minister Bruno Le Maire secured an affirmation from 75 food enterprises to slash prices, the report read.

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French shoppers have spent more than 20% more for Nestle products each month since January versus last year, the report specified. Price increases of Nestle peaked at 36.6% in May, Reuters noted. 

Similarly, shops sold products made by Danone for between 11.2% and 16.7% more than last year in the first six months of the year, the report added.

"Whereas in most countries retailers and food producers adjust the price of products frequently, France has set by law a three-month time window where such negotiations can take place, between December 1 and March 1 every year. Prices are then blocked for a full year unless one-to-one deals include review clauses," Reuters added.