A study ... Snapple Beverage Corp. has presented in court "apparently establishes" that the company used questionable distribution practices to meet a sales quota, a lawyer for 60 distributors suing the company said in a recent letter to the judge.We all know that a great deal of channel-stuffing occurs in every product category, but the increasing frequency of legal action involving the practice is beginning to make it extremely dangerous (in addition to short-sighted and stupid, which it has always been).
The letter by Howard B. Cohen to U.S. District Court Magistrate Judge Mark D. Fox says the study seems to show Snapple "engaged in a pattern and practice of channel stuffing. ..." The letter says the study - which is not part of the court file in White Plains - also seems to show that the company sold product at greatly reduced prices to certain distributors - but not to those who brought the lawsuit.
Wednesday, January 03, 2007
Channel-stuffing at Snapple?
An attorney for sixty distributors suing Snapple (a division of Cadbury) says that an internal study reveals that the company has engaged in channel-stuffing.
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2 comments:
Do you know anything else about this? My father owns one of these routes on LI for 12 years now and has been caught up in these lawsuit for a while now. He doesn't talk abot it much, but I know it is personally costing him legal fees, and not to mention stress. Will there be a conclusion or settlement anytime soon?
the study is just the tip of the iceberg...
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