CV Sciences Inc (CVSI)

[Wolf-man jack]

Beyond the Dispensary: Three key strategies for getting hemp products on shelves
Published 14 hours ago

Slotting fees are typically a one-time cost that depend on the retailer, according to Jesse Karagianes, director of sales for San Diego-based hemp company CV Sciences.

https://hempindustrydaily.com/three-key-strategies-for-getting-hemp-products-on-shelves/

Slotting fees may apply

Product manufacturers that want to get their products into mainstream retailers have to ask themselves if they’re willing to pay for it.

Large retail chains often charge what are called slotting fees for stocking products.

Retail experts who represent vendors with large chain contracts told Hemp Industry Daily that slotting fees don’t apply universally and there is no specific industry standard for how to determine shelf space.

However, they said, in many cases big-box retailers will charge vendors for the shelf space in addition to the consignment fee – or the retailer’s percentage of the product sale price.

Slotting fees are typically a one-time cost that depend on the retailer, according to Jesse Karagianes, director of sales for San Diego-based hemp company CV Sciences.

“Most have ‘free fills,’ with three pieces free per SKU per store,” Karagianes said. “Others will have a one-time fee of $5,000-$10,000 per SKU.”

Negotiations to reduce or eliminate slotting fees are common. But vendors will end up paying one way or another, according to Karagianes.

“There is a substantial cost associated with being placed in larger retailers,” he said.

“Free fills, slotting fees, and ‘fair share’ costs for endcaps (shelves at the ends of aisles) … are a requirement. One of these three will typically be required.”

Even with the fees, shelf longevity is never guaranteed, and it’s up to the manufacturer or vendor to fight for their space.

“Manufacturers have to demonstrate that they are willing to invest in efforts to help ensure turns of products on shelf,” Karagianes said.

“As a company, we are dedicated to building partnerships with retailers to ensure we can remain a brand partner, so we heavily invest in promotional efforts to garner customer awareness and sellthrough of our products.”

Retailers may also invest in private-label brands to allow them to cut out or replace independent brands.

Many fashion retailers are already working to develop their own blends, said Socati’s Elfenbein.

https://www.foodnavigator-usa.com/Article/2019/08/27/Socati-launches-two-CBD-products-for-the-CPG-market

“We are in discussions with many retailers – especially a lot that are in the fashion industry specifically – that are looking to launch a topical line and are looking to have a private label,” he said.

“They’re finding that a CBD topical product is a good foot-traffic driver for them. So I would guess that by the end of 2020 that we will substantially see most of the fashion industry participating in the space.”

Compliments of Brother Brevin at CVSY ahooooooo Have Mercy Wolf