Report: New Whole Foods Market policies could be alienating suppliers
Amazon’s recent grocery acquisition is changing its supplier policies — and some local and regional brands are feeling the fallout.
Whole Foods Market is now charging brands more money for prime shelf space and in-store product demonstrations and taste tests. They are also required to pay ongoing fees to third-party companies for food-safety audits and photographs of their products, according to Business Insider.
The natural foods grocer has also dropped minimum-shipment guidelines that prevented stores from making tiny orders of just one or two cases of goods. In other cases, it has stopped paying shipping fees for some goods altogether, the report added.
According to the report, the changes are part of the retailer’s efforts to cut costs and streamline product merchandising across its stores. Some companies are so negatively impacted by the changes that they are considering cutting ties with Whole Foods, the report said.
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