The All India Consumer Products Distributors Federation (AICPDF) has withdrawn the boycott of Hindustan Unilever products. The association made this announcement after meeting the company’s representatives on Tuesday. During the meeting, the distributors raised the issue of margin disparity between them and B2B (business to business) platforms and cash-and-carry companies like Udaan, Jumbotel, Walmart Best Price, Metro Cash & Carry.
The association said, “Hindustan Unilever (HUL) has assured that it will seriously consider protecting the interests of its distributors and will take action against them if price asymmetry and other wrong practices are found to be true.”
The association further said that therefore we have decided to end the boycott against HUL for now and will keep an eye on the developments in the market for the next three months. “If the company doesn’t rectify its bad practice after three months, we will start our campaign again,” he said.
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However, AICPDF has only withdrawn the agitation against Hindustan Unilever and said that it will continue the boycott of FMCG company Colgate-Palmolive India as before. Under this boycott, no distributor in Maharashtra will supply the “Colgate Max Fresh” brand. AICPDF has warned that distributors will start boycotting Colgate-Palmolive’s other brands if the company continues to ignore their demands.
In a strongly worded statement issued on Tuesday, the association said, “We have written to all the big companies in the FMCG sector and most of them have assured us to address their concerns, but Colgate-Palmolive has been on the verge of being stubborn. is adamant.”
The AICPDF warned, “Therefore, as announced earlier, we will initiate a boycott of Colgate’s Max Fresh brand in the Maharashtra market and if the company still does not heed our complaints, we will start from next week.” Colgate will also stop stocking the Vedshakti brand.”
Colgate-Palmolive said in a regulatory filing on Tuesday that it is in talks directly with its distributors on the issue. The stock exchanges had sought clarification from the company on reports that the sale of certain Colgate-Palmolive products may be closed in Maharashtra. “Please note that the company has a strong relationship with its distributors and supply chain partners, which has developed over the past eight decades based on mutual trust, fairness and transparency,” the company said in its response. It is reported that some Colgate-Palmolive products will be discontinued in Maharashtra.
“In addition, the company regularly conducts meetings with the distributors regarding their business challenges to resolve their business challenges. In these meetings, other issues are discussed apart from reasonable return on investment,” the company said. However, Colgate-Palmolive also said that it is not in talks with AICPDF.
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