QUESTION
Hey Eric. What’s up with Spartan? Thanks.
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There are two ways of being present in the stores – the one is by being part of the plan-o-gram, which guarantees a place is slotted, generally a single facing, and certain fees are associated with that spot. The other is for participating stores to make individual decisions based on their circumstances, in which case more flexibility exists regarding the merchandising elements, such as whether the product is displayed in the 12-pack (as intended). In the case of Spartan, nearly 3 times as many of the stores that they supply make independent supply decisions. We are transitioning from the first model to the second, because our testing has found that a single facing is not as beneficial for us as the display pack, particularly taking fees into account. We are discontinuing the plan-o-gram fees commitment in favour of store specific arrangements. As a result of our grocery testing experience, we will be increasing, not decreasing, our presence in grocery stores, but the mix of participating outlets will be more diverse..
