NewAge Inc (fka NBEVQ) (NBEVQ)

[ynotcookit]

re: schooling "professor" R4C on beverage industry "slotting fees" practices:

1st of all, your insistent posturing that you have inside info re NBEV's slotting fee costs is disingenuous for the fact that it is in neither parties' interest (retailer or supplier) to disclose that info.

"Little data exists on the accurate amounts of contemporary slotting allowances. Retailers are unwilling to divulge them because they don’t want suppliers knowing how much others are being charged, whereas the manufacturers are hesitant to reveal this sensitive information out of fear of hurting the relationship they worked so hard to establish." see https://www.repsly.com/blog/consumer-goods/slotting-fee-negotiation-strategy

2nd, it is common industry practice to negotiate a slotting fee, so if NBEV is in fact "paying something," it is not by any means a given that such fees may be onerous, if any. To wit, from the same article link from above, the role of logistics -- which Gen. Bucha regularly refers to in his CCs -- is a powerful leverage instrument in slotting fee reduction negotiations:

Recognize The Role of Logistics

Understand how product arrangement in supermarkets and supply chain management factor into the price of a slotting fee. The more you can reduce the costs associated with stocking your product, the more likely you are to receive shelf placement and have leverage over how much you pay to play.

--Detail how your company is able to prevent out-of-stocks through calculated inventory planning and fill replenishment orders successfully during times of high-demand.
--Show willingness to supply product families instead of single products in order to have a better chance of survival on a shelf next to other product families.
--Offer to distribute to warehouses without using a middleman. Bypassing a distributor equates to a lower markup on the wholesale cost, and thus a lower cost to consumers, making your brand more attractive.
--Be open to compromise. For example, consider agreeing to a higher slotting fee if it means the opportunity to sell at a higher volume.
--Opt for starting out by supplying only to local branches of a large chain. Many retailers are keen on stocking “locally-sourced” products, plus you’ll have the chance to prove yourself on a smaller scale before graduating to the national stage.
--Be aware of geography’s role. Selling in urban hubs will be more expensive than in suburban areas.
--The in-store location of your product directly impacts the cost of slotting fees. Products that require refrigeration or freezing incur higher fees because of the overhead energy costs of keeping them cooled.