Whole Foods Market is limiting how its suppliers do instore promotions at the retailer’s stores — and it’s making them pay for them.
Austin, Texas-based Whole Foods, which was purchased by Amazon in 2016, announced the changes in an email to its suppliers, according to a story in The Washington Post.
Whole Foods suppliers must work exclusively with retail strategy firm Daymon and its subsidiary, SAS Retail Services, to schedule instore tastings, check inventory on shelves and create displays, according to the story.
In addition, suppliers that sell more than $300,000 of product annually to Whole Foods will be required to discount their products 3 percent (for groceries) of 5 percent (for health and beauty products) to fund promotions. And local suppliers will have to pay $110 for each four-hour product demonstration by Daymon, national suppliers $165.