Please see a few of the answers provided by Scott Stotler, Non-Alc Merchandiser. Red Bull will now only fully fund stores that allocate 40% space in the energy door. 85% of the funding will come on invoice. 15% of the funding will be paid twice a year through bill backs.
1. Chicago is now listed at 40% of energy door space from Red Bull. What was the previous contract space requirements?
2013 space was slightly lower at 36% and was adjusted due to overall market share based on sales
2. Does the 15% funding (paid twice a year) come from schematic execution (which means that stores will have to carry and allocate space for specific SKU’s), or does it come regardless as long as there is 40% space.
Red Bull understands our by store use of Retailer Initiative and we have agreed that though there is no official number of skus that stores take into account $’s/GP$’s per store day and not get stuck only on unit movement. Also the idea of not eliminating a guest need and an example of that would be deleting ALL Red Bull Total Zero sizes. Hope this helps clarify for you and so ultimately it is based on space and not number of skus.
3. Do CRP retails matter in this funding? Many urban areas CRP to gain margins. Will they still receive the full funding with CRP?
At this time CRP’s on individual skus are not a factor to eliminate funding but as with any CRP’s we must ensure proper homework to justify these adjustments. Also note that promo CRP’s can/will jeopardize funding.