Our mission is to Develop, Enhance and Maintain Profitability and Equity for every Pepperidge Farm Owner
POAA Gives Meaning to the Motto: "In Business For Yourself, Not By Yourself."
MISPLACED PRIORITIES & BROKEN PROMISES
On April 2, 2020, TeamPOAA first reported that PF issued a Goldfish Product Supply action plan because panicked consumers created spikes in market demand that exceeded its production capabilities for GF varieties. PF claimed that the sole source of the problem was the pandemic. Mainstream news outlets, however, subsequently reported that PF’s limited production of GF was due to the challenges of upgrading its manufacturing facilities during the ongoing pandemic. In the meantime, PF also invoked its discretion to “allocate” allegedly limited supplies of a much wider number of bread and cookie varieties due to Covid-19. That was 30 weekly newsletters ago. After roughly 58% of 2020 and 5088 man hours to fix the problems, PF continues to severely or completely cut best selling varieties from our DSD orders without regard to the MAX ORDER amounts it announces. Even worse, PF produces and sells the exact same Consigned Products for its own accounts via central warehouse. These problems persist because of PF’s misplaced priorities to grow the business without honoring its promises to DSD owners.
Many owners invested their hard-earned capital into exclusive PF consignment sales businesses in large part because every version of the consignment contracts included an unequivocal promise from PF to use its best efforts to promote DSD over district or central warehouse sales. Although PF reserved the right to sell and distribute Consigned Products for itself via central warehouse only when retail chains refuse DSD, like Aldi, Amazon, Big Lots, Dollar General, etc, the plain purpose of the original promise was to assure DSD owners that PF would not take advantage of its position as an exclusive supplier. Rather than prioritize our DSD sales over its central warehouse sales, however, PF has been conducting sales promotions for itself through central warehouse chains.
Significantly, PF’s website provides links to online sales opportunities for retail chains that have not refused DSD, but can somehow still sell online the exact same varieties that PF is cutting from our DSD orders. Amazon is even selling the very best varieties directly to consumers at below wholesale prices, as previously reported by TeamPOAA.
Do PF's current allocation practices comport with the true meaning and intent of your consignment contract?
The opinions and beliefs expressed in this newsletter are intended only to spark discussions about serious and ongoing business issues that impact every owner in PF’s distribution network. If you need or want legal advice, you must consult with your attorney.
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You are receiving this email because you own an Exclusive Pepperidge Farm Franchise and/or an Exclusive Pepperidge Farm Distributorship, and you should know that the Pepperidge Farm Owners Association of America is proactively protecting your rights.