Manufacturer trade spending in foodservice continues to increase in cost and complexity, and for most, has become the second largest P&L line item after cost of goods. Add in the double whammy of distributor consolidation and national account share growth, and manufacturers are realizing they can no longer afford to pay out the same way as they have in the past.

To improve trade spending effectiveness, we’ve collaborated with Technomic, Inc., the leading provider of fact-based research and consulting for the foodservice industry, to conduct an ongoing industry study on trade spending best practices. The objectives of the study are to identify inefficiencies in trade spending processes and practices, provide benchmarked insights, and define best practices that enable foodservice manufacturers to spend their promotional dollars most effectively.

Challenged with flat industry growth and mired in a war to “take share” across most categories, manufacturers are pursuing a wide range of strategies and tactics to optimize their trade dollars. Along with that, manufacturers are embracing new, automated tools and processes that will allow them to quickly and accurately evaluate the potential profitability of new business proposals.