Let the principle of full disclosure apply
As long as your company openly practices a policy of "selling to anybody," then it has no ethical obligation to favor a distributor for having simply passed on one of your catalogs a few years ago.
As a matter of standard ethical business practice, your company might give a discount to distributors to give them an incentive to handle your product.
Do you eliminate the distributor? posted by STM
I assume that you mean the distributor sells more of the competitor's products posted by CarolineWhitbeck
Let the principle of full disclosure apply posted by Carlton