Produce Marketing and Retail Buying Practices

Paul M. Patterson and Timothy J. Richards

Review of Agricultural Economics, 2000, vol. 22, issue 1, 160-171

Abstract: Produce suppliers have raised concerns over retailer demands for slotting fees and other promotional allowances. These business practices have long existed in packaged goods trade, but are new to produce, which suppliers attribute to recent retail consolidation. Others argue that these allowances are consistent with the a competitive market, which is confronted with an enormous number of new products, most of which fail. Questions on the applicability of existing antitrust laws has limited their use. Eventually, the situation may rectify itself as more retailers adopt new business strategies that obviate the need for slotting fees and allowances.

Date: 2000
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