Disapproving recent media reports about Future Group’s formats—Big Bazaar and Food Bazaar boycotting the leading breakfast cereal brand—Kellogg’s, Atul Takle, head of Corporate Communications at Pantaloon Retail remarked: “We have not boycotted Kellogg’s”
Future Group, it was reported, is in the throes of boycotting Kellogg’s owing to a margin-tussle between the two. The retailer, it is held, has to allot significant shelf space to the brand because of the large pack sizes, while the margins are not commensurate with the shelf-space allocation. The situation becomes even graver when the retailer is at the receiving end while defining the slotting allowances which in the case of leading FMCG/Food brands, is often waived off or compromised on substantially.
— Bhavya Misra