FMCG distributors call off stir against Colgate-Palmolive after talks

Will gauge the price parity situation on the ground for the next 3 months

Distributors in Maharashtra have decided to resume the supply of Colgate-Palmolive India (Colgate India) products after the company gave an assurance to correct the issue of price parity on the ground between the traditional trade and organised distribution channel. 

The All India Consumer Products Distributors Federation (AICPDF) has decided to see if there are any changes on the ground over the next three months and will decide the future course of action accordingly. This strategy by distributors is the same as that used in the case of Hindustan Unilever.  Distributors have also been asked to communicate any issues of price disparity with proof.

“On January 5, 2022, Colgate (India) invited the federation’s office bearers to discuss (the issue of price disparity) with the company’s high ranking officials,” AICPDF said in a statement. “A six-member committee of the federation informed Colgate India about the problems faced by the distributor fraternity due to B2B players (selling stock at higher margins to retailers),” the statement added. 

AICPDF also said that the company’s executives assured the federation that they consider their distributors to be an important component of their distribution system and that the company will take serious decisions on how to protect their interests. If something goes wrong in the market, the distributors should feel free to launch their complaint via an e-mail id given by Colgate India officials. 

From January 1, the traditional trade in Maharashtra had stopped the distribution of MaxFresh range of products. It had also planned to stop the supply of other products of the company through the month, which has now been deferred. 

On Wednesday, in an email response to Business Standard’s query on the tussle, the toothpaste major said that they are committed to their partners. “As always, we at Colgate-Palmolive remain committed to forging productive partnerships with our distribution network to serve consumers. To that end, we have held — and will continue to hold — meetings with them to discuss and resolve their concerns. In addition, we have met with the AICPDF officials and shared with them our process of engagement with our distributors and our commitment to address their issues.”