Forefront II Trading Corporation vs Nestle

Presented by:
Lim, Linsangan, Magparok, Martin, Natividad
Presented to:
Mr. Lesther Joy L. Calva
 Situation

• FDU Forefront II Trading Corp. is a Filipino Firms serving as

distributors of Nestle Products in Metro Manila.
• The allegations against Nestle include predatory pricing,
violation of the terms of distribution agreement between
Nestle and the two distributors, unjust termination of the said
agreement, imposition of inflexible price bulletins that
resulted in huge losses to the distributors, unilateral
withdrawal of promised marketing support, perjury and
offering false testimony in evidence.
 Introduction and Background of the Topic
FDI Forefront II Trading Corp. and its parent firm
Service Edge Distributors Inc. (SEDI) took issue with
price bulletins.
Nestle Philippines issues to middlemen dictating
the cost at which Nestle products should be sold to
retailers. Distributors are told to follow the selling
prices in the bulletins of phase termination of the
distributorship agreement.
 Summary of Results / Solutions

• Filed Legal action against Nestle

• Art. 186 of the Revised Penal Code
• Call for passage of Antitrust Law by Sen. Villar
 Conclusion
This case sends a strong message to other
multinationals that their abusive practices will not be
tolerated. Significantly, it also encourages similarly
situated Filipino distributors and marketing outfits that
they can rely on the government to uphold and to
protect their rights.
Thank You !