The All India Consumer Products Distributors Federation (AICPDF) said on Thursday that the association will postpone the agitation against the FMCG firm Colgate-Palmolive.
The development comes a day after Colgate-Palmolive held talks with the representatives of the distribution association to discuss and resolve their concerns, regarding emerging B2B platforms, and cash-and-carry players such as Udaan, Jumbotail, Walmart Best Price, Metro Cash and Carry.
"From today, the movement against Colgate is postponed till further notice," the distribution said in a statement.
The association also said that it will keep a close eye on the market for the next three months, regarding the issue and if the situation doesn’t improve, they will resume the boycott and protest.
Notably, Colgate-Palmolive on Wednesday said, “We have met with All India Consumer Products Distribution Federation and shared with them our process of engagement with our Distributors and our commitment to address their issues. The Federation was supportive of our efforts.”
The association had alleged that FMCG companies such as Hindustan Unilever and Colgate-Palmolive offer higher margins to B2B platforms, which hurt the business of association members.
On Tuesday, the distribution association called off the boycott of Hindustan Unilever products, after HUL met the association members, and addressed their concerns regarding emerging B2B platforms, and cash-and-carry players such as Udaan, Jumbotail, Walmart Best Price, Metro Cash and Carry.
In the first week of December last year, the AICPDF had written to 25 FMCG companies including HUL, and Colgate-Palmolive demanding margin parity with B2B platforms, and cash-and-carry players. While most companies held discussions with the distributor association addressing their concerns by December-end, a lack of response from both HUL and Colgate-Palmolive led to the agitation by AICPDF. The association also alleged that FMCG companies such as Hindustan Unilever and Colgate-Palmolive offer higher margins to B2B platforms, which hurt the business of association members.
