At this Natural Products Expo West 2023 Hosted Education Session, Adesso’s President & CEO, Fred Schroeder joined Nick McCoy of Whipstitch Capital, Clara Paye of UNiTE Food and New Hope Network’s Tara Burkley for a conversation on how to strategically manage your business and understand your trade spend to grow responsibly.
During this session, moderated by Nancy Coulter-Parker, we shared expert advice and predictions for the future of CPG and outlined top tactics for staying ahead of economic challenges, technology shifts and retail opportunities.
We invite you to watch the full educational session, or pick from key moments of greatest interest to you below.
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Improving Efficiency is Key to Scaling
Nick suggests companies can become more efficient by pulling a few key levers on the P&L, especially trade spend, freight, and COGs (packaging, tolling & ingredients).
Getting Comfortable with Trade Spending and Working With Distributers in the CPG Industry
Tara reviews the New Hope studies, and how newer companies in the industry are scared to leverage trade spending to grow, which is a common pain point for the industry.
Understand the Level of Expense Trade Spending is for Manufacturers
Fred reviews the main expenses on the P&L, including the surprise to many manufacturers who typically view their trade spending as 15-20% of their gross revenue on trade spending, but often it turns out to be 40% when they look back.
How is Settlement Process of Deductions Similar to "Doing The Dishes"?
Adesso addresses trade spending in a structured process that includes much more than deduction management. Following this process enables analysis, which enables the manufacturer to improve effectiveness and leverage trade to drive more revenue and volume.
What are the Challenges Small Brands Face When Dealing with Distributors?
Clara discusses Off Invoice deals (OIs), as a necessary part of doing business with distributors. But how do you address over-buying? How do you push back if you see they already have excessive inventory in the DC?
Adesso's Trade Spend Strategies for Maximizing Savings and Investing in Customer Relationships
Clara points out that Adesso addresses trade promotion management from a customer-centric perspective, as she and Nick discuss the importance of looking at the pain points of the customer and buyer to help them be better at their jobs.
Quantify Trade at Each Customer to Evaluate SKU Performance & Avoid Losing Money
Fred reviews an example where a company gave away a free case per store, but the product did not sell as quickly as expected. With additional allowances & deductions, this resulted in no revenue with a cost per case of $197 to give product away.
The Challenges of Coupon Accounting for Small Brands
Nick reviews the challenges a small company needs to watch out for from an accounting perspective, as well as what promotions will be effective spending once you add it all up.
The Impact of Covid-19 on Trade Margins for Companies
Nick discusses how smaller vs. larger companies were able adjust trade and pricing during the pandemic.
How Can We Help You?
If you would like to have a conversation about how we can help make your trade spending more effective through trade planning and deduction management in the Flamingo TPE Solution.