3 June 2008 – Future Group, India's largest retailer, has sent instructions to its outlets to boycott the Cadbury brand over price discrimination, according to media reports.
The boycott is the latest in a protracted row between Future Group and Cadbury India Ltd, a subsidiary of the world's biggest confectionery company.
Future Group Chief Executive Kishore Biyani accused Cadbury of giving better deals to international retailers.
“We have found out from our intelligence network that the company is not cutting uniform deals with all retailers and probably has better deals with international retailers where there are larger stakes involved. We find their ‘conditional terms’ unacceptable," Mr Biyani said.
A spokesperson for Cadbury India said the news came as a surprise. “As far as we are concerned, the negotiations are still on to finalise a mutually agreeable set of terms”, they added.
Sales from emerging markets such as India provide Cadbury with one third of its confectionery revenues. It is therefore unlikely Cadbury would discriminate against India's modern retailers, which are estimated to account for 10 to 15% of FMCG sales in the country, a Cadbury senior official was reported as stating.
Cadbury's Indian business currently commends a 71% share of the domestic chocolate market, and also sells confectionery under the Eclairs and Halls brands, gum under Bubbaloo, and beverages under Bournvita.
