Alex Bayer’s Post

View profile for Alex Bayer, graphic

Managing Partner/Founder at Genius Dreams LLC (Crowdfunding & CPG Consulting) / Co-Founder at Genius Juice / Shark Tank Alumni / CPG Vibes Co-Host (#1 Rated CPG Podcast)

We discussed this on our latest episode of CPG Vibes, BIG BIG news from KeHE Distributors on 11/22, a new program dubbed 'AAP' (administrative allowance program). A flat 2 % off-invoice allowance for specific fees including New item intros, extra performance fees, MCBs, new item set up fees, and lumping fees. My quick thoughts: This is a step in the right direction for sure. UNFI implemented SSI which is a similar program to help brands budget for costs and fees associated with doing business with large national distributors. With all that said, these categories are pretty large and encompassing, so for all the other fees associated with Kehe that can chop down a brand's margin, will this program truly cover it? Likely not, but at least it covers some. What are your thoughts?

  • No alternative text description for this image
Sara Stender Delaney

Founder/CEO, Beverage Formulator x Sarilla, Winner of BevNet Packaging + SOFI Awards (DrinkSarilla.com), Speaker, Philanthropist, Importer

3w

Are they taking 2% off as a default now though and what are implications for existing suppliers who do not have those new item fees or aren't in a promo period? Should be optional?

Cathleen Turner

Get paid faster. Helping 3PLs get paid faster with Autaly.co | Viterbi Startup Garage (Present), VHLX fellow Cohort 1 2022, Food Foundry Cohort 5 2023

3w

How much of that 2% actually translates to sales? Increases in revenue? What have been the results of that program? Seems to be missing a lot of information about business impact

Hank Watt

Co-founder and owner of Nature's Wild Berry

2w
Like
Reply
Jeff Krinsky

Brand Manager/Sales Consultant in Natural Products & Wellness Industry

3w

Extortion & manipulation

See more comments

To view or add a comment, sign in

Explore topics