10 Retail Chains Control 36% Stake of FMCG Market in Bulgaria
Ten retail chains control a 36% stake of the fast moving consumer goods (FMCG) market and the share will keep expanding, according to statistics of the Made in Bulgaria Union.
In a Thursday interview for the Bulgarian National Radio (BNR), Plamen Grozdanov, Executive Director of the Union, drew attention to the need for amendments to the Competition Protection Act.
Grozdanov dismissed as "speculation" suggestions that that over-regulation would result in a food price spike.
He claimed that the provisions would enable producers and suppliers of the retailers to pursue their claims.
"The fair distribution of added value is what is most important to us. Currently the bigger share remains with the trader and producers cannot develop their production," the head of the Made in Bulgaria Union explained.
Grozdanov argued that the introduction of the concept of "substantial market power" would help Bulgarian suppliers and producers.
He reminded that the Commission for Protection of Competition had come up with a statement saying that the concept of "substantial market power" was well known both in theory and in practice and its introduction into Bulgarian legislation was fully justified.
Grozdanov informed that the legal amendments drafted by MPs from the Bulgarian Socialist Party (BSP) and liberal party Movement for Rights and Freedoms (DPS) also envisaged the establishment of a dispute settlement system.
"There is also a proposal to create a conciliation commission at the Ministry of Agriculture and Food which will be the first unit to handle trade disputes, after which they will go to the Commission for Protection of Competition and then to court," he declared, adding that the three-stage system functioned in many countries and had proved its effectiveness.
- » Turkey Tables Constitutional Change Bill to Parliament
- » Bulgaria's Exports to EU Grew 6% in Jan-Sept
- » Bulgaria Pays Off Belene Nuclear Plant Debt
- » Bulgaria Signs EUR 210 M Agreements with EEA Countries
- » Bulgaria, Slovakia, Lithuania 'Can Be Centers of Excellence for Nuclear Decommissioning'
- » Time for Bulgaria to Join Euro Waiting Room - C-Bank Governor