11% of the violations

In August this year the Moscow regional FAS department announced the initiation of a number of cases for discrimination against suppliers in respect of a number of major retailers. As it was reported to The DairyNews in the press service of the Federal Antimonopoly service (FAS Russia), according to preliminary results of monitoring of implementation of the amendments of the Law “On trade”, which entered into force on 15 July 2016; from more than 11 thousand analyzed contracts for all trading networks there have been detected over a thousand violations that makes 11% of the total amount of checked contracts.

We will remind, FAS department of Moscow region initiated a case against "Dixie", "Magnet", "the Seventh Continent", "Azbuka Vkusa" and the company "Miratorg", "Matrix" and "Globus gourmet", "Ya Lyubimy" and "Olivier", "Lenta" and Metro, "Victoria" and "Izbenka". In most cases, it was about creating discriminatory conditions for suppliers.

For example, according to the FAS, "Victoria" and "Izbenka" set different terms of compensation and penalties for their suppliers, stated in the Antimonopoly service. Also the retailers formulated different periods of price changes in the agreements with contractors, said in the Service. "Azbuka Vkusa", "Miratorg" had a violation that resulted in "the establishment of various terms for payment of fees and fines in the supply contracts, as well as different conditions in periods of changing prices for products."

The proceedings on signs of violation of the law "On trade" expressed in the establishment of various terms for the payment of remuneration in supply contracts have been initiated in respect of JSC "Tander" and JSC "Dixie-Yug" (a trading network "Magnet" and "Dixie").

These proceedings were initiated by Moscow regional department of FAS Russia and Moscow department of FAS Russia by results of inspections carried out in accordance with the instructions of the Government of the Russian Federation.

"Currently FAS Russia is summing up the results of the monitoring of the implementation of the amendments to the Law on trade, which entered into force on 15 July 2016 and according to which the existing supply agreements must be brought in conformity with the law until January 1, 2017. They will be presented in late September this year. According to the preliminary results of the monitoring the Antimonopoly service revealed the facts of infringement of the sectoral legislation in 69 constituent entities of the Russian Federation. So, from more than 11 thousand analyzed contracts for all trading networks there have been detected over a thousand violations, accounting for 11% of total checked contracts", - said the Deputy head of Department for control over social sphere and trade of FAS Russia Ekaterina Uryukina.

According to the expert, since the beginning of the year and today three claims for the illegal actions of the retailers have been received in Central office of FAS Russia.

"It should be noted that suppliers, retailers and manufacturers can inform the FAS Russia about the illegal actions of their contractors on the "hot line", - said Ekaterina Uryukina.

OPINIONS:

Press-service LLC «Valio»:

- Valio values its partners and customers, we strive to build strong and lasting relationships with them. One of the keys to favorable relations with retailers is mutually beneficial cooperation, which involves fulfillment of client’s and own objectives. Such a balance of objectives, as well as a desire to hear and understand the client, in our opinion, contributes to building a strong partnership. In addition, it is important for the company to remain active in the market, constantly develop both in specific categories and in relations with the client, and also to develop new areas, for example, Internet sales. So, in August, the company Valio has launched service delivery of products from stores on its website. We have implemented this project jointly with partners – services for Express delivery that buy goods in the trading networks of Moscow and St. Petersburg and quickly deliver them right to the table of Muscovites and Petersburgers.

The creation of own distribution network for the manufacturer of the finished product is a difficult task, especially considering the high market competition. There are a number of factors that hinder the implementation of business projects, they are: the limited range of one brand, because of which the success of the project will depend on the market share of a particular company and of its representation in different categories, plus the high cost of staff and providing viability of the shops, and this in its turn will limit the company's ability to maintain competitive prices.

Alexander Nikitin, GC «Alantal»

DN: Which problems of relationships with retailers can you name?
АN: There are many of us, but "RETAIL" is alone. Seriously, retail is experiencing problems of growing. The lack of competition between distribution networks, not perfect management at all networks, making orders not in time, lack of control over shelf life.

DN: In your opinion, what are the key ways of establishing favourable cooperation with retailors?
АН: Sink or swim. You need to be interesting to the consumer, and thus to trade networks. The embargo gave a powerful impetus to the activity of producers. It is clearly visible on the shelves of the networks. That's good. The consumer benefits from it. The quality of production is increasing. Another three years and the lifting the embargo will not change anything..

DN: How do you assess the possibility of development of own distribution network for the manufacturer of finished products? Is it profitable to develop your own sale in your opinion?
АН: The own trade network is necessary, let it be small and local. First of all, because it is necessary to test the product and have a quick direct link with the buyer.

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