PRESS: Food suppliers seek to mull restrictions for retail chains

MOSCOW, Jan 21 (PRIME) -- Russia’s largest food producers plan to meet with Deputy Prime Minister Dmitry Kozak to discuss relations with retail chains, Kommersant business daily reported Monday citing sources.

The letter with such a request was sent in December and signed by heads of RusBrand, the Association of Branded Goods Manufacturers in Russia; Rusprodsoyuz Food Manufacturers and Suppliers Association (Rusprodsoyuz), the Union of Alcohol Producers, and others. The letter was sent after a meeting of Kozak with largest retail chains X5 Retail Group, Magnit, Auchan, Lenta, and others, at which Kozak ordered to prepare amendments to the trade bill by excluding the payment for logistics from calculation of the size of rebates for retailers and revise the methodology of calculating the chains’ market share.

The list of proposals that food producers plan to discuss with Kozak includes a ban for retail chain to resell goods in the wholesale and small-scale wholesale segments. Food suppliers say that receiving discounts of 30–50% of the price of supplies retail chains resell these goods by wholesale and thus receive their market share bypassing the limit of 25% for each municipality.

Kozak’s representative Ilya Dzhus confirmed receiving the letter and said the issue about a meeting is currently being considered, the date has not been set yet. A source familiar with the situation said the meeting could take place during a month.

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