Seventh Continent, one of Russia's biggest grocery store chains, said on Thursday it had stopped taking deliveries from Danone and Unimilk dairy producers due to a large one-time increase in their prices.
The company says it plans to complain to the Federal Antimonopoly Service about the price hikes.
"Due to Unimilk-2000's significant increase in purchase prices for milk and dairy products ... by 31 percent... Seventh Continent declares an official termination of work with Unimilk-2000 and Danone companies," the company said. "The company intends to apply to the FAS for an explanation of the circumstances of the excessive price rises."
"The purchase price for the cheapest pasteurized 3.2 percent fat content milk is an average 30 rubles per litre, whilst the average price of raw milk is 15 rubles," Seventh Continent said, adding that the abnormal heat and forest fires might have become a pretext for the price increase.
Seventh Continent will consider proposals to resume supplies only after it sees "an economic justification for the price increases for each of the categories, transparent pricing, and a cut in the purchase price to fair and adequate market figures."
Danone owns such brands as Activia, Danissimo, Marshmallow Froot Loops, Danakor, Actimel. Unimilk owns Buttermilk, Bio-Balance, Actual, Smeshariki and Petmol brands.
MOSCOW, August 12 (RIA Novosti)
