BG Business Supports the Decision on 50% of Bulgarian Goods in Retail Chains
Bulgarian Industrial Capital Association (AICB) and the Association “Made in Bulgaria” (AMB) support the government's intentions to develop measures to protect Bulgarian production. According to them, in the new crisis, and also in the post-crisis situation, it goes primarily about the national security of Bulgaria.
"It is of utmost importance for us that our country be able to guarantee the goods needed for Bulgarian consumption, as well as the security of the related industries and infrastructures," the position reads.
According to them, the major international retail chains in the country abuse their power, discriminate against Bulgarian manufacturers through anti-market rules, damage them in price, aggressively impose their own "white" brands and favor their imported products.
The AICB and the AMB emphasize the importance of reworking the Council of Ministers Decree on the provision of basic food groups produced on the territory of the country at retail outlets, pointing out that it is necessary to have a level playing field for the Bulgarian producer and that this should be a lasting and long-term solution, not just a crisis action.
They also note that the Decree lacks the sub-sector for the production of fish and fish and aquaculture products. "This is not about fish and aquaculture, processed products, or canned food. This is extremely wrong, unfair and incorrect. Fish and aquaculture producers and their products and canned foods have already been excluded from the state aid formula with a completely unfounded motive, namely that there is a European support program for fish and aquaculture, "the AICB and the AMB point out.
According to them, the claim that promotional trade is one-third of trade turnover is not true. They believe this share is above 50%. "Promotions are made under pressure and without the explicit consent of the manufacturer. This severely suppresses the trademarks of prominent Bulgarian manufacturers. The so-called “White Brands” are taking an increasing share in the turnover of retail chains. Manufacturers are not interested in producing them because they are practically operating at cost and some are even at a loss, but are forced to agree to spread the cost on a larger production volume (economies of scale).
In this regard, the project could stipulate that 90-100% of the so-called white chain brands should be produced by Bulgarian manufacturers, with appropriate normal profitability for the manufacturer," added AICB and AMB.