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Explain each of the fees listed below and why each exists in the food/CPG industry slotting...

Explain each of the fees listed below and why each exists in the food/CPG industry

slotting fees

failure fees

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Answer #1

Slotting fees is the fees paid by the producers or the company to the supermarket owners to keep their product on the shelves and this is done in the food industry because food products can be impulsive at times and for maximum sale, this is needed. Failure fees is which the producer pays to the retailer if it doesn't meet the agreed sales levels all in all. This exists in the food industry because of the loss due to keeping the products on the shelf all in all.

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