•Manufacturer pays retailer to get a product into a store and/or gain prominent placement.
•Thousands of new grocery products per year
•Grocery stores often stock 30-45 thousand items
•There is room for only about 5% of 15,000 new grocery products each year.
•Slotting fees help ensure grocer profits on a product, help balance risk of trying unknown product.
•Grocery is a narrow margin business, slotting fees can represent a significant revenue source.