Unitas has boycotted and consequently ditched Mars Wrigley treat bags over “unacceptable” price increases as a result of squeezed margins.
The independent wholesale buying group had posted a notice online warning retailers of shrinking margins in a United Wholesale depot.
The notice, posted on 17 September, warned store owners that the supplier increased the wholesale price on treat bags but had not adjusted the price marked pack (PMP) accordingly.
It read: “We write to advise you that Mars Wrigley has imposed a price increase on their PMP treat bags but are not changing the PMP price which will mean a reduction in retailers’ margins.
“This is clearly unacceptable, and we have rejected their price increase. As a result of this action there may be a shortage of Mars Wrigley PMP treat bags available to you until the situation is resolved.”
Unitas went on to apologise the inconvenience caused, saying “we hope that you support us in this matter as we believe it is unacceptable to expect our retailers to operate on reduced margins.”
The wholesale group added that it would update everyone as soon as the situation is resolved, as it continues to negotiate with Mars Wrigley.
Unitas Wholesale managing director John Kinney said that, despite being unable to discuss specific pricing, the firm was in “dialogue with Mars Wrigley over the issue of shared margin.”
