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Mondelez faces boycott threat from distributors in India

Mondelez International Inc.'s distributors in Gujarat, India, are threatening to boycott the Indian arm of the company over issues involving fake outlets and tax evasion, The Economic Times of India reported March 21, citing the distributors' group.

According to the newspaper, the Gujarat Mondelez-Cadbury Distributors Forum formed a noncooperation movement against Mondelez India Foods Pvt. Ltd. in February after the company allegedly forced them to open multiple outlets periodically "to show its retail penetration."

The alleged expansion prompted the distributors to open "bogus outlets," through which Mondelez India allegedly evades India's goods and services tax.

The distributors have engaged in no business with the company for six days, the report said.

Meanwhile, a spokesman from the Cadbury maker described the allegations as "false and baseless," adding that the company only sells to distributor partners who are GST-registered, according to the report.