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- From: Leigh Hauter <lh AT pressroom.com>
- To: market-farming AT lists.ibiblio.org
- Subject: [Market-farming] promotional allowances
- Date: Fri, 7 Mar 2003 00:54:07 -0500
Title: promotional allowances
this sounds like payola or a bribe to me, but does anyone have
experience with paying promotional allowances to get a restaurant or
store to take their produce?
CONSTANCE L. HAYS WITH SUZANNE KAPNER NEW YORK TIMES:
Payments from food manufacturers to food service companies ---
which supply restaurants and other food preparers like hospitals,
schools and stadiums --- have been a long-accepted practice in the
industry. But the use of such payments, known as promotional
allowances, has become more aggressive in recent years, as the food
service industry has consolidated and become more competitive,
executives and suppliers say.
"The old days of slapping a guy on the back and giving him a
check for $200 and putting the product in are gone," said Richard
P. Boris of Palo Alto, California, a longtime sales manager for
manufacturers who calls on food service companies as well as
supermarkets. "It can cost you $15,000 a year now, or $50,000 if
you want a package."
The practice has come under intense scrutiny after the disclosure
last week by Royal Ahold, a grocer and food distributor based in the
Netherlands, that it had overstated earnings by $500 million for the
last two years as a result of accounting problems connected to
payments made to an American unit, U.S. Foodservice. The promotional
allowances to U.S. Foodservice were "in some instances booked too
high," the chairman of Ahold's supervisory board, Henny de
Ruiter, said.
-
[Market-farming] promotional allowances,
Leigh Hauter, 03/07/2003
- Re: [Market-farming] promotional allowances, Del Williams, 03/07/2003
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