Indian Retailer Boycotts Cadbury Products for Alleged Price Discrimination

cadbury Cadbury products will no longer be sold by India’s largest retailer, Future Group, as Future’s chief executive Kishore Biyani has accused the nation’s largest chocolate manufacturer of price discrimination. He has accused Cadbury of cuttingdeals with other retail chains that have significant presence in global markets, according to the Economic Times. Future Group owns a number of retail chains, including Pantaloons (clothing), Big Bazaar (general retail) and Food Bazaar (grocery).

According to the Economic Times, a conflict between the two companies has been taking place over the past several months. Although Future Group is the one that cut ties, the article states that the tension began when Future began to sell rival chocolate products that provide higher profit margins. The two companies have been quoted with clashing opinions on the issue:

Future Group’s take:

“We have found out from our intelligence network that the company is not cutting uniform deals with all retailers and probably has better deals with international retailers where there are larger stakes involved. We find their ‘conditional terms’ unacceptable, offering fill rates (stocks on shelf) of only 65%.”

Cadbury’s take:

“Sales from emerging markets like India are vital to global sales and therefore it is unlikely that Cadbury will discriminate on this front.”

The article also says that Future Group has come into conflict with Frito-Lay and GlaxoSmithKline in the past as well, though those issues have since been resolved.


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