what is the dereferencing practiced by distributors?

Thibaud Hue

Wednesday evening at midnight stopped the big negotiations between distributors and suppliers to fix their price. And to take advantage of the situation, supermarkets can delist products. But what is behind this practice? Europe 1 takes stock.

Arm wrestling under tension because of inflation and rising production costs. As the negotiations between suppliers and distributors concluded on Wednesday evening, the supermarkets threatened to practice delisting to take advantage of the situation. Legal practice, dereferencing is a bargaining lever for distributors. During traditional trade negotiations, if the supplier refuses to lower its price for a product, supermarkets can threaten to no longer offer it on their shelves and thus break the contract.

A common strategy

So for the consumer, the effect is not immediate. But once the stocks of the product have run out, it disappears from the shelves and does not come back. This is a frequent scenario, which occurs every year. For example, in September, Intermarché no longer sold bottles of Evian, Volvic and Badoit water following a disagreement with Danone. Another example: it is also almost impossible to find the Tropicana brand in Carrefour stores at the moment.