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Israel: Supermarket squeeze on food suppliers may head to antitrust authority

By  |  March 18, 2013

New, stricter trade terms from Israeli supermarkets are reportedly forcing some suppliers to antitrust authorities who claim the terms are excessive. Suppliers are forced to make agreements to pay stocking fees and are now arguing the demands are now too much to be able to afford. Supermarket chain Super-Sol, the nation’s largest, has been especially targeted as one whose demands are stretching suppliers thin with fees paid by a percentage of the suppliers’ sales. According to one anonymous food supplier, Super-Sol takes advantage of the fact suppliers can’t distribute to more than 200 branches by themselves; therefore, the suppliers often need Super-Sol’s logistics center for wider distribution, and are charging various fees for the agreements.

 

Full Content: Haaretz

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