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

Danone will be feeling some of the greatest pressure to lower prices, said Bernstein analyst Bruno Monteyne.

Retailers like Carrefour have accused global consumer goods makers including Nestle, Unilever, and Pepsi of not 'co-operating'. Picture: Stefan Wermuth/Bloomberg

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.

France has long outstripped Germany, Italy, Spain, and others as the EU’s biggest market for groceries by supermarket revenue, according to research firm IBISWorld.