Retailer Reported Slotting Frequency Likely Lower Than Incidence - FTC
This article was originally published in The Rose Sheet
Approximately 50%-90% of all new grocery product introductions are subject to slotting fees, according to retailers who responded to a Federal Trade Commission survey. Six out of eight surveyed suppliers, however, indicated they pay slotting allowances for 80%-90% of new grocery product introductions
You may also be interested in...
Formal guidelines on shelf-access payments are not appropriate "at this time," FTC tells trade groups in recent letter. Agency denies petition submitted April 14, 2000 by Independent Bakers Association, Tortilla Industry Association and National Association of Chewing Gum Manufacturers requesting issuance of guidelines. Commission's decision is in line with advice offered by FTC staff in February 2001 report (1"The Rose Sheet" Feb. 26, 2001, p. 8). FTC and its staff "are continuing to study slotting allowances and related grocery marketing practices, and further guidance in these subjects may be warranted as more is learned," letter says...
The Federal Trade Commission is slated to receive nearly $1 mil. in funding under the agency's FY 2001 budget to investigate retail slotting fees. Also known as slotting allowances, the fees are payments given by manufacturers to retailers in return for product placement on store shelves.
With a push from the Organic Consumers Association, the National Organic Standards Board is recommending that the use of nanotechnology be strictly prohibited from products certified under the National Organic Program