FMCG distributors call off stir against Colgate after talks

FMCG distributors on Thursday said they have suspended their boycott of certain products of oral care maker Colgate after talks with the company representatives over the issue of price disparity between the traditional distributors and organised business-to-business channel.

A day after a virtual meeting with Colgate-Palmolive (India) Ltd (CPIL) representatives, the All India Consumer Products Distributors Federation (AICPDF) called off its stir to boycott certain products of the company starting from January 1, 2022.

"From today, the movement against Colgate is postponed till further notice," the AICPDF said in a statement.

Meanwhile, the federation also said that for the next three months, the distributors of Colgate will keep a close watch on the market regarding this issue and if the situation does not improve, the organisation will again adopt the path of agitation.

On Wednesday, CPIL had confirmed about meeting with distributors over the issue.

"We have met with the AICPDF and shared with them the process of engagement with our distributors and our commitment to address their issues.

"The Federation was supportive of our efforts," CPIL had said in a statement on Wednesday.

It further said it remains committed to forging productive partnerships with its distribution network to serve consumers.

The distributors had earlier decided to stop selling products of FMCG major Hindustan Unilever Limited (HUL) Colgate's Max Fresh brand in the market from January 1 in Maharashtra.

Later, they had a meeting with HUL representatives earlier this week and called off their stir against the FMCG major on Tuesday.

However, the AICPDF had decided to continue to stop selling Colgate products as it was not coming forward for talks.

Now, as the talks have happened, the AICPDF, which represents over four lakh distributors and the stockist across India, has called off its boycott against CPIL.

Fast-moving consumer goods (FMCG) distributors are seeking a level-playing field from manufacturers regarding price disparities between the traditional trade and B2B retailers such as Jiomart, Walmart, Metro Cash & Carry, Booker, ElasticRun and Udaan.

The association has meetings with leading FMCG makers including  HUL, ITC, Nestle, Reckitt over the issue, which have assured them to look into the issue.

"Distributors had complained to the Consumer Products Distributors Federation about the problems being faced by the distributor fraternity due to e-B2B and B2B," said AICPDF.

The Federation, it added, also e-mailed to almost all FMCG companies about this issue, almost all companies have also taken positive initiatives on this subject discussing with the Federation, and agreed to give a solution on this.

Earlier, the AICPDF had written an open letter to companies saying that B2B players are offering FMCG products to retailers and local shops at lower prices.

The AICPDF had also asked its members "not launch any new product of the company" unless they get an undertaking from the FMCG makers that the particular product is not available with B2B retailers.

Photograph: Jeff Christensen/Reuters