In recent months, tensions have mounted between CPG brands and their retail customers over how far and fast to hike prices. Record levels of food inflation across the region – up 13.1% in the eurozone for October, according to Eurostat – suggest that food makers have been largely successful in winning pricing concessions that reflect the inflationary pressure they are feeling.
However, a grim economic outlook is likely to make this picture more challenging. A number of multinational CPG companies have spoken of deteriorating sentiment in Western European markets.
Most recently, the issue was flagged by confectionery giant Mondelez International