FSMA Advocates for Manufacturers

As the voice of the foodservice industry, FSMA is uniquely positioned to address sensitive issues affecting both Suppliers and their sales and marketing agencies (“SMA’s”) that are overreaching and unfair. While an individual Supplier may have economic or other consequences on an individual basis, as the voice of the industry FSMA can respond to issues affecting those Suppliers thus providing a low risk way to mediate disputes and overturn bad policies. 

The following is a summary of historical positions that FSMA has successfully advocated on behalf of Manufacturers:

  • Opposed demands by Distributors and other Power Buyers to appoint their own SMA’s to obtain a discriminatory price at the expense of the Manufacturer.
  • Opposed demands by Distributors to secure discriminatory volume pricing discounts by creation of faux in-house buying clubs.
  • Opposed demands requiring Suppliers to quote discriminatory prices on certain product lines without payment of commissions.
  • Attended FTC vs. Sysco trial to provide industry guidance pending the US District Court’s injunction ruling for potential antitrust violations in the proposed merger.
  • Limited the extent of Distributor confidentiality and non-disclosure agreements.
  • Opposed demands by Distributors that would permit the Distributor to replace the Supplier’s SMA with its own school specialist.
  • Opposed demands by Distributors on Supplier’s SMA that are not required by law and unnecessarily increase Manufacturers’ costs.
  • Established the recognized industry-standard Manufacturing/Agency Contract.
  • Opposed demands by Buyers that they designate Supplier’s SMA’s.
  • Challenged Distributors’ requests on SMA’s for breach of Suppliers’ confidentialities.
  • Established a Code of Ethics for all FSMA members, which facilitates fair conduct and compliance with the law by all.

For more information call Rick Abraham at 410-491-7857 or via Email