Romanian Food Processors Accept High Retail Slotting Fees Out Of Fear

In a seminar on farming issues, on Friday, Steriu said a food producer’s sales are liable to drop by 60-70% after its products are taken off the shelves of a retail chain. This threat always puts the producers at a disadvantage in negotiations with the retailers and drives them to accept slotting fees as much as 25% higher than elsewhere in Europe.

The retailers attempt to justify the high fees through aggressive promotion and by citing additional costs compared to those in Western Europe, said Steriu.