News Article

ZEG – BICO Battle Reaches New Heights

Industry- & Retail Organizations

COLOGNE, VERL, Germany (May 22) – With the current difficulties of BICO, the underground battle between the two major IBD cooperatives reaches new heights (depths). ZEG is planning to set up a new company that is aimed at ex-BICO members. Lots of BICO members do not make it a secret that they don’t agree heartily […]

COLOGNE, VERL, Germany (May 22) – With the current difficulties of BICO, the underground battle between the two major IBD cooperatives reaches new heights (depths). ZEG is planning to set up a new company that is aimed at ex-BICO members. Lots of BICO members do not make it a secret that they don’t agree heartily with the restructuring process of the Verl based dealer cooperative, and contemplate ending their membership, with ZEG as a possible alternative. However, their entry in Germany’s biggest buying association presents problems due to the fact that the ex-BICO dealers will often be located in cities or regions where existing ZEG members are operating. The rights of the current ZEG members for exclusivity within their area prevents the entry of ex-BICO members in the same area. The new company by ZEG should offer the solution for this problem. Next to ex-BICO members, the ZEG is also targeting other IBDs to enter the new company for which the Cologne based buying association recently sent out a mailing.
BICO also made a move in its battle with ZEG and for its mere existence. BICO allegedly will offer non-BICO members some of the benefits of the buying association, mainly low wholesale prices. Existing BICO members won’t appreciate this move even when it will be organized in a separate legal entity. It is obvious that BICO needs the business. At BICO, nobody was available to either confirm or deny these rumors. (JO)

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