As talks continue, FMCG distributors may extend the deadline for non-cooperation.
- March 29, 2022
- FMCG HORECA BUSINESS
The All India Consumer Products Distributors Federation (AICPDF), which represents dealers
and distributors, talks with several FMCG companies.
Officials say that distributors of fast-moving consumer goods (FMCG), such as biscuits and
shampoos, are likely to postpone the January 1 deadline they set to stop working with consumer
goods companies as negotiations over their similar demand margins as organized distribution
According to an official, the All India Consumer Products Distributors Federation (AICPDF),
which represents dealers and distributors, talks with many FMCG companies, which might last
until next year.
AICPDF had previously set a deadline of January 1, 2022, to resolve the price disparity and
threatened to remove products from their portfolio if they did not meet it.
If B2B merchants such as Jiomart, Walmart, Metro Cash & Carry, Booker, ElasticRun, and
udaan continue to sell the products at lower costs, the federation has decided to push for a “non-
cooperation” effort against FMCG businesses starting next year.
According to an AICPDF official, discussions with several companies are ongoing, and some
have received positive responses. “Yes, we may extend,” the official said when asked about the
deadline. “We are still talking to companies and getting positive reactions.”
He stated that talks with three big businesses, including ITC, Nestle, and Reckitt, are over.
“Right now, we’re in talks with almost seven companies,” the person stated.
AICPDF, founded in 2019, represents approximately 4,00,000 distributors and stockists in India.
It has previously written to companies, alerting them that B2B sellers supply FMCG products to
retailers and local stores at lower prices than they are now offering, which is “adversely
damaging” their brand and goodwill.
“As a result, our desire is that we receive those products at rates that are comparable to Jio
Mart/B2B companies,” the group wrote in an open letter to FMCG companies.
Furthermore, the AICPDF stated that its members would “not launch any new product of the
company” until they had assurances from FMCG manufacturers that the product would not be
available to B2B merchants.