Maharashtra FMCG Distributors To Stop Selling HUL Products From January 1, Retail News, ET Retail

New Delhi: FMCG distributors in Maharashtra plan to stop selling selected products from leading company HUL from January 1, as the company has not entered into discussions with them on the issue of the price disparity between distributors traditional and organized B2B distributors. However, HUL has stated that their agreements with their channel partners are “not exclusive” and stated that the prices offered by them through various channels, such as General Trade, Modern Trade, eCom and Cash & Carry B2B, may be different in depending on factors such as cost. operations and channel structures.

A spokesperson for HUL said, “We sell and distribute our products across all channels such as General Commerce, Modern Commerce, eCom, Cash & Carry B2B, etc., to enable our buyers and consumers to buy our trusted brands.

However, depending on buyers’ buying habits, channel structures and operating costs, the assortment offered could be different, the spokesperson added.

He added that as the channels evolve, Hindustan Unilever Ltd (HUL) will continue to take new initiatives with the aim of helping to develop the business of its distributors and strengthen its distribution.

The development takes place in the context of rapidly evolving consumer goods distributors (FMCGs) seeking a “level playing field” from manufacturers between traditional distributors and other organized business-to-business distribution companies (B2B ).

The Federation of Indian Consumer Products Distributors (AICPDF), an organization that represents resellers and distributors, is in negotiations with several manufacturers of consumer products. He had previously called for a “non-cooperation” movement against FMCG companies starting next year if B2B retailers, such as Jiomart, Walmart, Metro Cash & Carry, Booker, ElasticRun and udaan, continue to sell the products at lower prices.

However, AICPDF, which represents more than four lakh distributors and resellers across the country, said it has received responses from several FMCG manufacturers on the matter, with the exception of HUL, which is not responding. .

Its distributors in Maharashtra had decided not to sell HUL’s Kissan brand products. If the company does not respond within the next week, it will also stop selling HUL products under the Glow & Lovely and Ron brands.

However, HUL said it has a long-standing relationship with its distributors, based on trust and mutual interest.

“Our distributors have told us overwhelmingly that they will reject any attempt to create a wedge between the company and our trusted distributors,” said a spokesperson for HUL.

General Commerce (GT) continues to be the company’s largest channel and our distributors (redistribution stockists) are and will remain its valued partners, he said.

“We remain fully committed to ensuring that our distributors get a fair return on their investments and to improving the capabilities of our GT network,” said HUL.

Previously, the AICPDF had written to companies to inform them that B2B retailers are offering FMCG products to local retailers and stores at inferior products, which they are offering and that this “negatively affects” their reputation and goodwill.

“Therefore, our request is that we also receive these products at prices at which we can also offer the same prices as the Jio Mart / B2B companies,” the association said in an open letter to the FMCG companies.

In addition, the AICPDF had also stated that its members would also not launch a new product from the company unless it obtained a commitment from the manufacturers of consumer goods that said product is not available from B2B retailers.

About Patrick K. Moon

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