France's Senate has formally accused the country's largest grocers of using "predatory practices" against manufacturers and farmers, according to a report published on May 21. A Senate commission found an "unbalanced distribution of value in the food chain" after examining profit margins over six months and conducting 189 hearings with agricultural unions, sales directors, buying managers and other stakeholders.
The core tension is structural. Four major retail chains dominate French grocery: Leclerc, Carrefour, Intermarché and Coopérative U. These retailers work through three "hyper-dominant" buying groups, Concordis, Aura Retail and Leclerc's own group. The Senate's analysis revealed that power has shifted decisively toward large retailers.
The money distribution
From a typical €100 (about $116) spent by consumers on food, the Senate found only €8 reaches farmers, €14 goes to processors and manufacturers, €35 to importers and €40 to large retailers. This distribution underpins the complaint: retailers are capturing far more than their handling and logistics costs justify, according to the inquiry.
Retailer pushback
France's retail trade body, the Fédération du commerce et de la distribution (FCD), rejected the report as "biased" and "completely disconnected from economic reality". The FCD's director general, Judith Jiguet, said the inquiry "conflating key economic indicators, misses the economic reality of the sector" and noted that "every day, retailers absorb price shocks to keep the French shopping basket affordable." Intermarché called the report "an indictment of the retail sector" and criticized the lack of scrutiny on food manufacturers' own dominant positions and the pressure they exert on suppliers.
What the Senate wants
The inquiry laid out 24 recommendations, including requiring large retailers to submit annual declarations of financial flows with European purchasing and service centers and to disclose back margins publicly. The Senate intends these measures to "bring about a rebalancing essential for the future of our agriculture and our agri-food industry".
Industry support
France's food-and-drink manufacturing trade body ANIA and six other professional organisations representing consumer goods manufacturers in France welcomed the findings and called on the government to act on the recommendations.