FMCG distributors threaten strict steps for Colgate-Palmolive over price disparity issue
After Colgate-Palmolive did not address its issue of price disparity between traditional and business-to-business distributors, distributors in Maharashtra have warned the business they will stop selling its personal care products.
Numerous fast-moving consumer goods distributors have complained that there exists a price disparity between what manufacturers are charging traditional retailers and what they are charging business-to-business retailers such as Walmart and Jiomart, ET Bureau reported. Colgate-Palmolive has come especially under fire for its failure so far to respond to requests for dialogue. Retailers in Maharashtra have threatened to stop selling its Max Fresh brand unless Colgate-Palmolive addresses the issue.
The All India Consumer Products Distributors Federation, which represents four lakh distributors, is currently in talks with numerous distributors concerning the issue of price disparity.
“Almost all the companies of FMCG were mailed on the same subject two weeks ago by the organisation...(and) almost all the companies have assured to solve this problem after talking with the organisation, but Colgate under its obstinate attitude till now, neither is talking to the organisation nor is responding,” said the AICPDF in a statement, the Press Trust of India reported.
Colgate-Palmolive said it will address the issues with its distributors.
“We have engaged with our distributor network and are looking to address their challenges and find solutions that help grow their business, ensuring our consumers continue to have access to their favourite and trusted brands,” Colgate-Palmolive India Limited said in a statement, the Press Trust of India reported.
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