A business dispute has erupted between TGI Foods and its former distribution partner, Lutessy Foods and Services, over contractual obligations, delayed supply of goods and unsold inventory estimated at nearly N50 million.
The disagreement centres on claims by Lutessy Foods that product delivery delays and the reassignment of company sales representatives disrupted product movement across its outlets, leaving a significant volume of goods unsold and close to expiration.
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Brandspur Brand News reports that the dispute began after Lutessy Foods said it paid N10 million for product orders on September 1, 2025, but did not receive the stock until later in the month. According to the distributor, the situation worsened after the sales representative initially assigned to support product distribution was redeployed to another distributor shortly after payment was made.
Managing Director of Lutessy Foods, Tokunbo Peters, said the lack of sales support slowed the movement of goods in the market, leading to a build-up of inventory across multiple outlets. The company claimed that goods valued at over N40 million remained in storage facilities in Igando and Badagry, with several items approaching their expiration dates.
Correspondence sent to TGI Foods in November 2025 indicated that the distributor had repeatedly raised concerns about the situation, noting that attempts to obtain assistance from the company’s account management team did not yield the expected resolution. The distributor also alleged that some stock collected by a reassigned sales representative had yet to be paid for.
A manager at Lutessy Foods, Oluwakemi Owolabi, said the distribution arrangement was originally structured to include sales representatives who would help move products quickly across retail outlets. She maintained that the absence of such support contributed significantly to the accumulation of stock now valued at nearly N50 million.
However, TGI Foods rejected the allegations and insisted that distributors are primarily responsible for moving products through their own logistics networks. The company stated that sales representatives are deployed only as supplementary support and not as a mandatory requirement under the distribution agreement.
Head of Field Sales at TGI Foods, Godday Osagie, explained that the redeployment of personnel can occur when distributors fail to meet performance targets or when operational priorities shift. He added that such decisions are guided strictly by the contractual terms signed by distributors.
According to Osagie, the agreement clearly outlines the responsibilities expected from distributors, including daily stock reconciliation and independent product redistribution through their own vehicles and sales channels.
The company’s Head of Corporate Communications, Rafiat Gawat, also said the issues raised by the distributor had already been addressed within the framework of the signed contract. She noted that the termination of the distributorship arrangement followed an internal performance review earlier in 2025.
While Lutessy Foods maintains that the dispute has caused significant financial losses and business disruption, TGI Foods insists its actions remain consistent with the agreed contractual provisions.
Both parties have continued to defend their positions, with the distributor signalling possible legal action while the manufacturer maintains that the partnership was discontinued in line with the terms of the original agreement.
