Apple Rush Company Inc (APRU)

[dleach5]

I am in the grocery business for what some say is way to long, but we will forget that part.

The other thing that people should understand about this industry are the fees that are charged by the Grocery store, the distributor, and so on the information below is old, but it should give you an idea.

So for anyone that thinks "Hey why are they in Store X?" it aint that easy.

Here is the source: https://qz.com/807723/inside-the-secret-backroom-deals-big-brands-make-to-vie-for-control-over-grocery-stores/


Here’s how it works. Under the current setup, supermarket chains charge food companies three types of fees, which wind up heavily influencing what foods and products will fill shelf space:

Companies pay slotting fees to introduce a new product to store shelves, be it a new flavor of ice cream or new potato chip brand.

They also fork over money for pay-to-stay fees, which ensure product will stay on store shelves. This isn’t always cash—often it’s a discount, or free cases of food sent to supermarkets.

There are also display fees, which go toward getting premium placement, such as at the end of store aisles, alongside flashy signage intended to attract shopper attention, or even areas in which they don’t naturally belong.
The costs can be prohibitive at every layer of the grocery market. Small chains charge up to $9,000 to introduce a new product into the freezer section at all locations, according to Frozen & Refrigerated Buyer, a trade publication. The CSPI report also referenced a 2001 study published in the Journal of Law and Commerce, which detailed how Truzzolino Pizza Roll paid $25,000 to Safeway to get in all its locations, and Apple & Eve spent about $150,000 to get a fruit-punch product into a limited number of stores in the northeastern US.