SÃO PAULO, 18 Dec (Reuters) – Multinationals Unilever and Froneri, a joint venture of Nestlé, are promoting ‘predatory’ commercial practices in the ice cream sector in Brazil, with prices below the cost of production and exclusive contracts with retailers, the Brazilian association of ice cream manufacturers, Abrasorvete, said on Thursday.
‘When a multinational sells a tub of ice cream for a price that barely pays for raw materials and logistics, it is not competing, it is suffocating the market to reign alone later’, stated the president of Abrasorvete, Martin Eckhardt, in a press release. ‘What we are seeing are global giants charging prices that escape any industrial cost logic.’
According to the entity, local ice cream producers in the states of Ceará, Rio Grande do Sul, Minas Gerais, Paraná and Espírito Santo formalized detailed complaints, demanding urgent intervention and citing cases in which 1.5 liter tubs of the product are being sold in markets for less than R$9, which would be three times less than the market price.
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When contacted, Unilever, owner of the Kibon brand, Nestlé and Froneri were unable to comment on the matter immediately. The companies lead the ice cream market in Brazil.
Abrasorvete states that it sent requests for dialogue to the companies on December 3, but has not yet received responses from the companies and does not rule out going to court.
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The entity claims to represent 10 thousand companies in the ice cream sector in the country.
‘We receive constant reports of members who are prevented from selling their products or even holding events in public places due to contractual restrictions imposed by these companies’, said Eckhardt. ‘There are reports of direct payments (gloves) of up to R$20 thousand for small establishments, such as bakeries, just to guarantee the exclusivity of the equipment and remove local competition’, he added.
(By Alberto Alerigi Jr.)
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