Are Slotting Fees History?

Discussion
Mar 05, 2003
George Anderson

By George Anderson


The recent disclosure of accounting irregularities involving promotional monies paid to retailers such as Ahold may benefit the industry and consumers over the long run, say some industry observers.


Burt Flickinger III, managing partner, Strategic Resource Group told the Associated Press, “This will spur change in the business that will hopefully lower costs for manufacturers and make it tougher for rogue retailers, and that should help consumers.”


Rob Culin, Kurt Salmon Associates said, “A truck load of money is given to retailers and half of that money is being wasted. It is funding other things in the business that the consumer never sees.”


Moderator’s Comment: Will the problems of Ahold and
others result in a change in the current system of promotional payments to retailers?


We agree with the sentiments Burt Flickinger expressed
to the AP, “We’ve seen too much phantom profitability … too much dishonesty.
It has to change.” [George
Anderson – Moderator
]

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