Retailers' factory gate pricing plans are running into problems with major manufacturers failing to play ball and disputes between retailers and manufacturers in pilot schemes. The Grocer knows of at least three major manufacturers who are fighting moves by the multiples to introduce what they regard as measures to squeeze their margins even further. One major manufacturer said Sainsbury was "breathing down our necks" while Tesco had given it a year to comply. "But we are holding off," the manufacturer said. Tales abound of arguments about storage and distribution costs between retailers and manufacturers in categories where factory gate pricing has already been introduced. Sainsbury, one of the prime proponents of factory gate pricing, has taken over 200 suppliers through the process. And more than 20% of cases bound for Tesco RDCs now arrive on the chain's own trucks. But one manufacturer said of Tesco's frozen primary distribution: "It is not all the rosy picture that has been painted. There are arguments over the distribution costs of preferred suppliers." Sainsbury and Tesco have embarked on an aggressive roll-out of factory gate pricing and say participation is not optional. {{NEWS }}