Local retailers ask for entrance fees and discounts, reports oil and mayonnaise producing company

22 February 2007 (08:24)

‘If a retail chain claims it’s eager to do business with the regional food producers, this claim is not supported by any actions. In reality, Yekaterinburg-based retailers ask for a significant entrance fee and retro-bonuses, or discounts,’ says Pavel Lyalkov, the Sales and Marketing Director of the local oil and mayonnaise producing company.

According to Mr. Lyalkov, this is true of local, federal, and multinational players alike, no producer can avoid facing this.

‘The thing is, today’s grocery retailers are developing very rapidly, and bonuses are a way of developing their network. It’s not that they conspire, everybody is after one’s own profit, but there can always be cooperation terms that are more or less attractive. We do cooperate with Auchan, for example, and are planning on cooperating with Carnival Trade Center, but we don’t do business with Metro,’ Mr. Lyalkov said.

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