When it was still an independent market before destruction at the hands of the Ralphs supermarket behemoth, Hughes carried some wonderful Armenian flat bread from a local bakery as well as some of the higher-end La Brea Bakery bread. After the takeover of course, the yummy, local breads were tossed out in favor of Ralphs own miserable in-house bakery. Or so I thought…
The entertainment industry isn’t the only hive of scum and villianry. Check out this testimony from a Independent Bakers Association spokesperson on the practice of “slotting fees” — bribes that supermarkets demand from manufacturers who want their products highlighted in the store. Change the name of the products and this testimony is identical to the problems that small records face if they want their releases to be in a decent spot in a record store.
A New England supermarket chain was purchased approximately five years ago by an individual who used the proceeds of slotting fees to cover a portion of the equity for the purchase. A “pay or stay” slotting fee was required for each item in the supermarket
A New York area supermarket chain regularly charges $20,000.00 for each new item introduced by a food manufacturer, as well as “requesting” annual contributions to the purchasing manager’s Christmas party.
A West Coast supermarket chain was solicited and paid a one million dollar fee to change from one food manufacturer’s products to another’s. The justification was cost of computer reprogramming.
[via bOing bOing]