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Bucharest
September 25, 2021
BUSINESS

Canned food producers accuse hypermarkets

Romanian products are not granted attention in stores, while imported ones enjoy much better positioning, Romconserv  President Aurel Tanase said.

Hypermarket chains charge very high taxes for the Romanian products they exhibit on shelf, which exceed 50 pc of the price, place them in areas without visibility and often pay for them less than the production cost, the employers’ association of the canned food industry, Romconserv accuses, Mediafax reports. “They impose contracts and monthly fees paid for merchandising services that are not efficient,” Romconserv president Aurel Tanase said in a conference yesterday.He added that Romanian products are not granted attention in stores, while imported ones enjoy much better positioning.

According to Romconserv, large retail chains prefer imported products, even though they are close to the end of their warranty period, if they are sold cheaper than their Romanian equivalents. Plus, the demands of international chains increase each year and the marketing cost sustained by the producer reaches 35-50 pc of the product’s value. “Out of RON 1,000, you receive RON 600 back. Moreover, all kind of promotions appear of late, which further cut into the incomes of producers by 20 pc a year,” Tanase added.According to the same source, although producers have annual contracts signed in the first part of the year, retail chains later demand various sums of money which were not stipulated in the contract and were not caught in the producer’s budget. “If we do not agree to paying these sums, they resort to temporarily blocking the orders from providers, reducing the ordered quantities and other forms of constraints forcing us to sign. Although important sums of money were paid to open new shops, if one of these shops closes they do not refund us.

Moreover, if a shop closes and another opens (in the same network), we are not refunded for the old shop and get charged for the new one,” the Romconserv president explained.He added that the payment of invoices was extended from 35 days to more than 60-90 days, but providers still must pay their dues on time, with the respective VAT, which makes them lose money.With this regard, canned food producers want to protest against the policies of big retail chains by breaking food cans.

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