History of Trade Spending

In a 1971 effort to halt inflation, the Nixon administration froze wages and prices for 90 days. He froze them again in 1973. Manufacturers raised prices before the freezes—then didn’t lower them. Instead of reducing prices, they began giving discounts to retailers that could be passed on to consumers for limited times.

In the mid-80s, retailers began taking control. They launched programs aimed at boosting volume—and the dollars stores would earn as products passed through their shelves. This was the birth of today’s trade promotion programs and the fees retailers collect for them. Trade promotion costs have risen steadily since the late 2000s.

Today, trade spend is still a crucial aspect of doing business, but it helps brands manage their business rather than hurt them. The purpose of trade spending today is to encourage promotion via discount, secure additional distribution, or shelf space, or to drive additional volume. It can be in the form of a percent discount from list price, an amount per unit, or a fixed or lump-sum payment for merchandising provided by the retailer.

Hodgson Mill Joins Adesso Solutions’ Client Community to Improve Trade Promotion Effectiveness 

We are excited to announce that family-owned, Hodgson Mill of Effingham, IL, has joined Adesso’s community of client-partners. Hodgson Mill is the maker of top quality flours, baking mixes, pastas, sides, and more – both in the traditional retail segment of the CPG industry, as well as the natural-specialty market.

After attending Adesso’s annual Trade Experts Council conference in mid-October, Jeffrey Masters, CFO at Hodgson Mill commented, “The conference provided us with an opportunity to interact and network with Adesso’s team and client community, and to hear about their system from users, not from sellers.”

“It has been a pleasure getting to know the team at Hodgson Mill,” said Fred Schroeder, President & CEO. “We look forward to getting them set up and live quickly on the Flamingo TPM system, and immediately benefiting from our system effectiveness services to maximize their trade promotion investment.”

For additional information, we invite you to visit us online, or contact Karin Souren, Director of Marketing at ksouren@adesso-solutions.com or 847-342-1095 x4031.

NORPAC Foods, Inc. Partners with Adesso to Improve Trade Effectiveness for Both Retail & Foodservice

We are excited to share the news that NORPAC Foods, Inc. is partnering with Adesso to improve their Trade Effectiveness. With an opportunity on both the Retail and Foodservice areas of their business, they were looking for a complete trade system that addressed both business segments in a totally integrated and seamless fashion. After a detailed selection process and reference checks, they recognized Adesso was the only partner to have these in one single system.

As Rich Jones, EVP of Technology typically comments, “As we designed and developed our Flamingo system, we had the foresight to make it flexible enough for all CPG business segments. Having a total US based team of developers and being together in our Rolling Meadows office keeps us close to our clients and their needs. We talk to them all the time – it’s not that hard with this level of communication.”

Keith Peers, close to this process and responsible for the setup and their ongoing success, also had a perspective: “The system is easy to use, and our System Effectiveness services are something no one else offers like we do. It creates a clear path to success.”

Please look for more updates as the setup progresses over the next weeks.

For additional information, please contact Karin Souren, Director of Marketing at ksouren@adesso-solutions.com or 847-342-1095 x4031.

‘Trade Experts Council’ Client Conference Sets Upcoming TPM Release Priorities

Rolling Meadows, IL (October 28, 2016) – At the conclusion of Adesso Solutions’ annual fall client conference, there was excitement and a feeling of great productivity emanating from Adesso’s newly renovated meeting and training facility in Rolling Meadows. The Trade Experts Council, consisting of participants from multiple client partners, had the opportunity to participate in trade effectiveness and business process discussions around how they approach their business, as well as opportunity areas where Adesso can incorporate their business needs into the future of Flamingo, Adesso’s TPM system. Continue reading