Manoon Nokngam, vice president of the Retailers of Bang Kapi Association, said yesterday that members of his association had lost 60-70 per cent of their income to the CPF kiosks.

CPF, one of the largest conglomerates in the region, is trying to monopolise the market by excluding small retailers, he said. CPF was refusing to sell its products to retailers and setting up its own retail outlets in market areas to sell direct to consumers at cheaper prices.

The association will today ask Commerce Minister Somkid Jatusripitak and the Internal Trade Department to order the company to end what it calls an unfair trade practice.

"Vendors believe that a food manufacturing giant such as this could create a monopoly and damage our business," Manoon said.

The vendors have called on CPF to close the retail kiosks. If they continue to operate, CPF's regular retailers would have to shut down because the CPF shops are able to offer customers cheaper prices.

CPF has been establishing its own fresh-food kiosks in markets in Bangkok and nearby provinces for one month.

Vendors previously affected by the CPF marketing strategy also protested, and as a result the company promised to suspend the practice.

However, retailers are confused about the company's intentions because the kiosks have reopened.

"We are afraid the business of small retailers is being undermined," Manoon said, adding that consumers will also suffer from a monopoly in the market in the long run.

Another representative from Bang Kapi market said retailers want to phase CPF out of fresh markets permanently.

"It is an unfair practice against small retailers and wholesalers because we have no power to compete with a giant company like CPF," the retailer said.

 Adirek Sripratak, CPF's president and CEO, said the company did not intend to damage retailers or its trading partners. "The firm only set up the kiosks to support our small retailers in the market, but does not aim to sell directly to customers," he said.

The CPF board has reviewed the kiosk strategy and may drop the project in the near future if it causes a conflict of interest between retailers and wholesalers, he said.

However, Adirek suggested that some large wholesalers who do not want CPF to take their business might be leading the protests.

Adirek said the company would launch CP-Fresh Marts nationwide. The shops will be managed by franchisees and are now being developed.

Petchanet Pratruangkrai

The Nation