Colgate Distributors Suspend Purchases Over Discount Dispute

Colgate distributors in Maharastra halt purchases due to alleged unfair discounts offered to quick-commerce platforms. The All India Consumer Products Distributors Federation warns of a potential nationwide campaign if grievances remain unaddressed, which could lead to a significant disruption in Colgate's supply chain and market presence.

Distributors affiliated with Colgate Palmolive have announced a suspension of product purchases in Maharastra, escalating tensions over discount practices. The decision, effective May 12, arises from accusations that Colgate offers steep price cuts to quick-commerce channels, undermining the interests of general trade partners.

According to a statement from the All India Consumer Products Distributors Federation (AICPDF), Colgate has been allegedly providing discounts ranging from 50% to 60% off the maximum retail price to platforms like Blinkit, Zepto, and Instamart. This federation, representing nearly 450,000 FMCG distributors nationwide, cites sustained business challenges and unresolved issues as the catalyst for their action.

In a move laden with potential market impacts, AICPDF cautions that without corrective measures from Colgate, the current state-level action could escalate to a national level, threatening to remove Colgate products from shelves nationwide and disrupt supply lines. Previous efforts have included approaching the Competition Commission of India for a probe into such practices.

(With inputs from agencies.)