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Contentions over Single Source Retail Program

post wswa 121715“WSWA has serious concerns that the Single Source Program may result in violations of the Federal Alcohol Administration Act by wholesalers who may participate in that program,” states WSWA President & CEO Wolf

The new Single Source Program at Kroger has WSWA worried about the implementation process for a few key reasons. The primary apprehension is that according to the policy, distributors working with Kroger will be required to pay merchandisers. This is a change from the current category management setup in which wholesaler employees assist with merchandising products in their portfolio.

The Federal Alcohol Administration Acts (FAA) came into effect during the post-Prohibition era in which tied-house rules were being manipulated by wholesalers and retailers. In order to combat this, the FAA ensured the three-tier system would provide checks and balances to the tied-house setup. The Single Source Program may infringe on the FAA as WSWA fears.

 

Source: WSWA