01/17/2017
Albany, NY
CPG Trade Rate constant at 14.8%
Trade Spends May Heat Up in 2017
Albany, NY: The overall CPG trade promotion rate remained steady at 14.8% in 2016, according to the latest data from Price-Trak, an Albany, N.Y.-based market research company specializing in price and trade promotion reporting of 150 standard categories.
Slight shifts were seen in many segments with Refrigerated Foods and Household Products posting increases vs. prior year. Trade allowances can vary by segment, category and item and depends on many factors. In 2015 year, we saw an uptick in trade spending behind new products, soft topline sales in some major CPG companies. However, Andy “Dewey” Rumpelt, president of Price-Trak, noted: "sometimes companies need to chase the topline revenue number and trade promotion can move significant volume. That apparently was the case in 2015 that was not repeated, in most segments, in 2016."
| Price-Trak | ||||
| Total % Trade Spend * | ||||
| Category | 2014 | 2015 | 2016 | 2016 vs. 2015 Pt. Change |
| Total CPG | 14.2 | 14.8 | 14.8 | 0.0 |
| Cereals | 19.2 | 20.0 | 19.1 | -0.9 |
| Dry Grocery | 15.1 | 15.4 | 15.1 | -0.3 |
| Frozen Products | 12.9 | 13.4 | 13.4 | 0.0 |
| Health Care | 18.2 | 18.6 | 18.1 | -0.5 |
| Household Products | 12.7 | 13.3 | 13.5 | 0.2 |
| Personal Care | 13.2 | 13.4 | 13.1 | -0.3 |
| Regrigerated Foods | 11.3 | 12.9 | 13.8 | 0.9 |
| Shelf Stable Beverages | 15.6 | 16.2 | 15.9 | -0.3 |
*Excludes MDF and Shopper Marketing Funds
Rumpelt continued, “although making definitive conclusions on trends from a few years is a challenge, the two areas that appears to definitely show a trend upward are the Refrigerated and Frozen segments. It’s quite possible that other segments may follow that path in 2017.”
Within each segment there are categories that had significant increases or decreases in trade promotion. If interested in obtaining specific category information, contact National Promotion Reports for details.
Price-Trak, National Promotion Reports LLC (formerly Leemis, Promodata), provides specialized competitive cost and trade reports, monitors 150 standard warehouse categories including many organic items, and provides manufacturers with easy-to-use syndicated reports to monitor price changes and trade allowances. Price-Trak also supports grocery wholesalers with pricing and promotional allowance understanding to help ensure grocery wholesalers and independents have the tools necessary to remain viable channels and compete effectively. www.natpromo.com
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