Danone and Nestle fight for key French market as pressure to cut prices grows

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The world's biggest packaged food maker Nestle and dairy giant Danone rely on France for revenue more than any other country in Western Europe, raising the stakes in price negotiations due to begin there next month.

Speaking on Sunday night, French President Emmanuel Macron also criticised the companies for maintaining high prices despite a decline in inflation.

Data compiled for Reuters by Bernstein shows France accounted for an estimated 8% of Activia yogurt-maker Danone's total reported sales in 2022, and nearly 4% of Nestle's annual sales. In both cases, the United Kingdom came second. Laurent Cenatiempo, Competition and Legal Affairs Manager at European Brands Association AIM, said consumer goods groups would fear retailer retaliation.

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