FMCG distributors warn Colgate Palmolive of taking strict steps over price disparity issue

FMCG distributors in Maharashtra have warned Colgate Palmolive India of taking steps against the company for failing to respond to the issue of price disparity of products between traditional and business-to-business distributors.

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New Delhi: FMCG distributors in Maharashtra have warned Colgate Palmolive India of taking strict steps after the company failed to respond to the issue of price disparity of products between traditional and business-to-business distributors.

The Fast-moving consumer goods (FMCG) distributors are seeking a level playing field from manufactures and are in protest over the price disparities between the traditional trade and business-to-business retailers such as Jiomart, Walmart, Metro Cash & Carry, Booker, ElasticRun, udaan etc.

Commenting on the development, Colgate Palmolive (India) said it values the strong relationships with its distributors and is looking to address their challenges and find solutions that help grow their business.

“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,” said a statement from Colgate Palmolive (India) Ltd.

All India Consumer Products Distributors Federation (AICPDF), which represents over 4 lakh distributors and the stockist pan India, is in talks with several FMCG makers over the issue.

“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 AICPDF in a statement.

Due to this "obstinate attitude", AICPDF is going to take strict steps from January 1 and no distributor of Maharashtra will sell Colgate's Max Fresh brand in the market, in the next one week, and if the company don't come to talk, then the next week the distributor will not sell the Ved Shakti brand, the association said.

Colgate-Palmolive said it values the strong relationships, it has developed with distributors over the past 8 decades.

"We work hard to cultivate trust and transparency and we will continue to prioritise the growth of all of our partners irrespective of their size and scale,” it added.

Earlier this week, FMCG distributors had said they would stop selling products of the leading maker HUL in Maharashtra, as it has not engaged in discussion with them over the issues of price disparity.

AICPDF had earlier called for a “non-cooperation” movement against FMCG companies.

It had written to companies that B2B retailers are offering FMCG products to retailers and local shops at lower rates than what they offer and it is now "adversely affecting" their reputation and goodwill. Also Read: BlackBerry phones to die on January 4; here’s how the brand came to an end

"Hence our demand is that we also receive those products at prices at which we can also offer the same prices as Jio Mart /B2B companies," the association had said in an open letter to FMCG companies. Also Read: Pension scheme for married couple: Get Rs 10,000 monthly on retirement, tax benefits; check how