New Delhi:
The distributors of Colgate Pamolive have decided to suspend the purchase of all their products in Maharashtra from 12 May, alleging that the company is giving deep discounts to Quick-Cummers’ channels, which is against the interest of general trade.
All India Consumer Products Distributors Federation (AICPDF) said in a statement, “Colgate is aggressively carrying stock in quick commercial channels such as Blinkit, Zepto and Instamart, providing a deeper discount of 50–60 percent on MRP.”
AicPDF FMCG is a umbrella body of distributors PAN India.
This collective action is the result of the months of “frustration, unresolved complaints, and continuous commercial erosion” that has reached an existent extent for distributors and comprehensive general trade networks.
AICPDF warned that if the company fails to initiate corrective action, this state level action may soon grow in a nationwide campaign, possibly to meet the return of Colgate products from retail shelves and to complete the coordinated disintegration of its supply lines.
The Federation claims that it represents over 4.5 million FMCG distributors, which continuously raise their concerns over alleged hunter pricing by FMCG manufacturers for quick commerce (Q-Com) platforms.
The association had earlier also approached Fair Trade Regulatory CCI, demanding an inquiry against FMCG companies on the issue.
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