Taming the leviathan: how to control trade expenditures

Trade spending has become the single biggest cost for most fmcg manufacturers, as an increasingly condensed grocery retailer market finds more and more ways to squeeze money out of suppliers.

Taming the leviathan: how to control trade expenditures

Aidan Bocci

Trade spend is the single biggest issue affecting consumer goods marketers. In the UK, the grocery market has condensed to such a level that just a few key players dictate ever tougher terms to their suppliers. Because of this, the long-term prognosis for the fmcg sector is not good, as suppliers are forced to invest in their customers and not in their brands, and this will eventually lead to an erosion of those brands.

Retail giants, such as Tesco, now account for around 30% to 40% of suppliers' retail business,...

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