Сoffee and tea suppliers in Russia began having problems with retailers
Michael Chen
Senior Web Developer
As it became known to RBC daily, the chain of hypermarkets "Auchan" abandoned Kraft Foods goods (coffee brand Maxwell House, Carte Noire and Jacobs), that decided to raise prices due to rise in price of green coffee in the world market. Other manufacturers of tea and coffee began facing problems with retailers.
For more than a week, Kraft Foods company hasn't not supplyed its products to "Auchan". This information was confirmed by the Director of Corporate Affairs and Relations with state bodies "Kraft Foods Rus" Yana Guskova.
According to the source of RBC daily, about three weeks ago shipment of the product of one of the tea companies were suspended in the shops of X5 Retail Group. Paulig Company (brands Paulig Classic, Paulig President, etc.) also managed to feel the flatness of the X5 and Magnit. All these examples show that the position of networks in the negotiation process has become more rigorous.
It seems that retailers are trying to win back all the constraints faced by the adoption of the Trade Act , - said one of the vendors.
That Trade Act entered into force on 1 February 2010, but fully came into effect on August, 1 last year. By that time Suppliers and retailers had to adjust their contracts and fully bring them into compliance with the law. So, now partners are resigning contracts, and networks are trying to regain the conditions under which they had worked with suppliers to the commencement of the Trade Act.
Source: rbcdaily.ru/2011/08/19/market/562949981290591
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