Amazon plans to charge companies 5% of sales to stock their products. This is the end of dsd, not just Nabisco.
www.cnbc.com/2018/03/11/whole-foods-calls-meeting-with-key-vendors-as-tensions-flare.html
5 replies (most recent on top)
It's coming! They'll be more than just us exiting DSD
Retailers pay now for DSD, it's a surcharge built into product cost. DSD isn't free! Retailers want to eliminate DSD to get more competitive with cost and gain control back. This has been in krogers plan for years! It is a retailers decision but Mondelez has been preparing for this exit for years. To take a world's largest snacking company from DSD to warehouse would not happen as quickly as it will without preparation!
I can tell you how it applies to mondelez, you really think kroger and walmart will allow whole foods to charge all the vendors 5% of sales to stock and maintain their product without getting in on the action? For a good walmart doing say 40k a month, they will charge mdlz 25k a year to maintain with their employees. Mdlz doesn't want to dump dsd, but its gonna be forced on them.
Just raise your prices 5 percent to off set the cost
Ever see an Oreo or Triscuit in Whole Foods? And you never will, that's half our problem! We don't have anything in our portfolio that fits that segment. As Dirk said we won't survive without finding something, but as of now nothing! Not sure how this article pertains to mondelez?