With Garden of Life’s move into mass, it appears to have impacted their MAP enforcement on non-FDM SKUs that are closely related to those similar in FDM i.e. Dr. Formulated Mood+ being sold at $28.06 on Amazon as of 11/13/18 while MSRP is $46.99. Their published MAP is 30%, however, this is at a 40% discount. These items are being sold by Garden of Life on Amazon, not by a third-party.
In a previous discussion we had with Garden of Life, we voiced that this was a concern with the move into mass and would be inevitable. We have reached out to Kent, VP of Sales, and he stated that MAP is important to Garden of Life and that the problems will be fixed. That conversation was a week ago. Our hope is that Garden of Life will come through and the MAP will be addressed, however, we do have some cause for concern, but at this time we are patiently waiting for a clear answer. CHANGE: Moved from IN COMPLIANCE → STRIVING TOWARDS MAP.
On another note, following up with our previous discussion with Kent for FDM pricing for independent retailers, this program is still going on today and we urge you to talk with your rep if you are interested in receiving the deeper discounts in order to better compete with mass-market pricing.
While we’re on the topic of mass-market, Megafood has come to our attention as another brand that is going the FDM route. We are awaiting word from Megafood directly as to how they plan to roll this out and what it may mean for retailers, however, we view this as a strong lack of commitment to our channel and our store, Nutrition World, has already decided to not reorder 40% of their SKUs we carry. Note these SKUs were already slow performers and/or easily replaceable. CHANGE: TBD.
Vital Proteins is another brand that has popped up in mass. Their MAP remains one of the best, therefore, we are keeping them as a good brand to work with. However, that could quickly change if their pricing in mass becomes heavily discounted. CHANGE: NONE, BUT WATCHING CLOSELY.
Stay tuned for further updates about our Q4 findings.