Thirsty for more? Pepsi's off at Carrefour in Mallorca

The decision, which was taken by Carrefour management in France, applies to France, Spain, Belgium and Italy. Apart from Pepsi, products include Doritos and Lay's crisps.

Carrefour will be replacing PepsiCo products with own brand items and, in some cases, products from other suppliers. The company believes that it is unacceptable that its customers have to assume the increases in price. It also feels that these increases are unjustified, which is why it will stop selling PepsiCo products when stocks run out.

PepsiCo says that there have been negotiations with Carrefour. "We will continue to have dialogue in good faith to try and guarantee the availability of our products."

The price increases haven't yet been revealed, but it is known that Coca-Cola has raised them by seven per cent and that Carrefour has accepted this. The assumption is, therefore, that PepsiCo's increases are much higher.

Large retailers renegotiate prices with suppliers each year. El Corte Inglés has been doing this but has not revealed if it plans to veto any brand at its supermarkets.

Mercadona says: "We have a very close relationship with suppliers and we ask them to produce the items that our clients demand." The company's strategy is based on "always low prices", in force since 1993, to guarantee the highest quality shopping cart at the lowest possible price.