RIGA — The Latvian Food Industry Federation sent a letter to the Palink retail company, which owns the Iki supermarket and other chain stores, decrying what it considers discrimination against local producers.
In the past few years the practice of the oversized bargaining power of Baltic supermarket chains vis-à-vis local producers has been criticized. This spring in Lithuania the government passed a wholesale reform law restricting retail chains from [private_supervisor]forcing certain fees upon suppliers, with penalties of higher taxes and stiff fines to give it teeth.
No longer will retailers be able to charge “entrance” fees to join the market, or pay arrangement fees or demand cheaper prices in case the product doesn’t sell.
However, Latvia has yet to see such a law and now Latvian producers are complaining that Palink has forced them to accept what they consider unfair billing practices and costs. Palink has required that Latvian producers deliver their products to the company’s central distribution center in Panevėžys, Lithuania, which will incur additional costs.
Palink operational director Dace Zundure told the Diena Bizness business newspaper that distributing food from the central location in Panevėžys was “logical” and convenient for the company.
— Baltic Reports reporter Adam Mullett contributed to this article. [/private_supervisor] [private_subscription 1 month]forcing certain fees upon suppliers, with penalties of higher taxes and stiff fines to give it teeth.
No longer will retailers be able to charge “entrance” fees to join the market, or pay arrangement fees or demand cheaper prices in case the product doesn’t sell.
However, Latvia has yet to see such a law and now Latvian producers are complaining that Palink has forced them to accept what they consider unfair billing practices and costs. Palink has required that Latvian producers deliver their products to the company’s central distribution center in Panevėžys, Lithuania, which will incur additional costs.
Palink operational director Dace Zundure told the Diena Bizness business newspaper that distributing food from the central location in Panevėžys was “logical” and convenient for the company.
— Baltic Reports reporter Adam Mullett contributed to this article. [/private_subscription 1 month] [private_subscription 4 months]forcing certain fees upon suppliers, with penalties of higher taxes and stiff fines to give it teeth.
No longer will retailers be able to charge “entrance” fees to join the market, or pay arrangement fees or demand cheaper prices in case the product doesn’t sell.
However, Latvia has yet to see such a law and now Latvian producers are complaining that Palink has forced them to accept what they consider unfair billing practices and costs. Palink has required that Latvian producers deliver their products to the company’s central distribution center in Panevėžys, Lithuania, which will incur additional costs.
Palink operational director Dace Zundure told the Diena Bizness business newspaper that distributing food from the central location in Panevėžys was “logical” and convenient for the company.
— Baltic Reports reporter Adam Mullett contributed to this article. [/private_subscription 4 months] [private_subscription 1 year]forcing certain fees upon suppliers, with penalties of higher taxes and stiff fines to give it teeth.
No longer will retailers be able to charge “entrance” fees to join the market, or pay arrangement fees or demand cheaper prices in case the product doesn’t sell.
However, Latvia has yet to see such a law and now Latvian producers are complaining that Palink has forced them to accept what they consider unfair billing practices and costs. Palink has required that Latvian producers deliver their products to the company’s central distribution center in Panevėžys, Lithuania, which will incur additional costs.
Palink operational director Dace Zundure told the Diena Bizness business newspaper that distributing food from the central location in Panevėžys was “logical” and convenient for the company.
— Baltic Reports reporter Adam Mullett contributed to this article. [/private_subscription 1 year]
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