I feel like I'm in competition with my OWN manufacturer!!

I own and operate a local distribution company in South Florida. More specifically, we distribute dairy products to hospitals, restaraunts, c-stores, schools, etc. I am considered an independent distributor for this company and have signed a contract to distribute their brand of products. It is considered the best (premium) product for the area.

Herein lies my problem. I am considered a "Distributor" and the manufacturer has their own drivers called "Wholesalers" for which they distribute the products for the larger grocery stores, etc. I am restricted from soliciting those accounts. Over the past several months one particular drug store chain (which is distributed by the Wholesaler) has been authorized to sell the products at retail MUCH BELOW the Distributor (My) cost .

I'll give an example, the drug store chain charges for the main product at retail for $2.49 each. That means any consumer can walk into the store an purchase the item for $2.49 ea. The manufacturer is selling to the store at or below this cost. MY COST on the EXACT same product is $3.06. Not only has my sales been falling quite a bit, I have also been losing my accounts because they cannot move the products. Customers complain, and move on to buy the product at drug store chain.

Is there anything legally that I can do against my manufacturer?

Thanks so much for your help in advance.

-J

You would have to check the contract. I dont beleive there are any standling laws on the books that would specifically prohibit the manufacturer from doing this. They are not obligated to sell products at any given price (unless specifically stated in the contract).