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Agreements between small food store retailers and their suppliers: Incentivizing unhealthy foods and beverages in four urban settings

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  • Laska, Melissa N.
  • Sindberg, Lesley Schmidt
  • Ayala, Guadalupe X.
  • D'Angelo, Heather
  • Horton, Lucy A.
  • Ribisl, Kurt M.
  • Kharmats, Anna
  • Olson, Christina
  • Gittelsohn, Joel

Abstract

Small food stores, like corner stores and limited assortment stores, often sell and promote unhealthy foods and beverages. Yet few studies have examined retailer participation in contracts or agreements with suppliers of energy-dense, high-sugar, and high-fat foods and beverages. Given that these agreements may influence the placement and promotion of unhealthy products, this study aimed to: (a) describe incentive-based agreements between food/beverage suppliers and small food store retailers, including monetary value of incentives; (b) assess retailers’ perceptions of these agreements, including issues related to importance and profitability. Both qualitative (open-ended) and structured interviews were conducted with 72 managers of small stores in four sites: Durham, NC; Baltimore, MD; Minneapolis/St. Paul, MN; and San Diego, CA. Interviews focused on incentivized agreements with suppliers of candy, salty snacks, sweet snacks, sugary beverages and frozen desserts. On average, retailers had 1–2 agreements per product category (range 0–5). For candy, salty snacks and sweet snacks, median one-time, lump-sum incentives were valued at $100–$120 for each product category, in contrast to $2000 for sugary beverages. Incentives included product displays, free/discounted products, marketing materials, and slotting payments/fees. Perceived advantages of agreements included rebates and suppliers’ support for product merchandizing, while disadvantages included minimum purchasing and product placement requirements. Retailers had mixed opinions about whether these incentives significantly contributed to profits overall. In summary, understanding the nature of these agreements and the ways in which they influence retailers’ decision making could be valuable in advancing efforts to partner with retailers and improve the healthfulness of food environments.

Suggested Citation

  • Laska, Melissa N. & Sindberg, Lesley Schmidt & Ayala, Guadalupe X. & D'Angelo, Heather & Horton, Lucy A. & Ribisl, Kurt M. & Kharmats, Anna & Olson, Christina & Gittelsohn, Joel, 2018. "Agreements between small food store retailers and their suppliers: Incentivizing unhealthy foods and beverages in four urban settings," Food Policy, Elsevier, vol. 79(C), pages 324-330.
  • Handle: RePEc:eee:jfpoli:v:79:y:2018:i:c:p:324-330
    DOI: 10.1016/j.foodpol.2018.03.001
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    References listed on IDEAS

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    1. Feighery, E.C. & Ribisl, K.M. & Achabal, D.D. & Tyebjee, T., 1999. "Retail trade incentives: How tobacco industry practices compare with those of other industries," American Journal of Public Health, American Public Health Association, vol. 89(10), pages 1564-1566.
    2. McLaughlin, I. & Pearson, A. & Laird-Metke, E. & Ribisl, K., 2014. "Reducing tobacco use and access through strengthened minimum price laws," American Journal of Public Health, American Public Health Association, vol. 104(10), pages 1844-1850.
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    Cited by:

    1. Sara John & Megan R. Winkler & Ravneet Kaur & Julia DeAngelo & Alex B. Hill & Samantha M. Sundermeir & Uriyoan Colon-Ramos & Lucia A. Leone & Rachael D. Dombrowski & Emma C. Lewis & Joel Gittelsohn, 2022. "Balancing Mission and Margins: What Makes Healthy Community Food Stores Successful," IJERPH, MDPI, vol. 19(14), pages 1-20, July.
    2. Makaiko G. Khonje & Matin Qaim, 2019. "Modernization of African Food Retailing and (Un)healthy Food Consumption," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    3. Megan R. Winkler & Shannon N. Zenk & Barbara Baquero & Elizabeth Anderson Steeves & Sheila E. Fleischhacker & Joel Gittelsohn & Lucia A Leone & Elizabeth F. Racine, 2020. "A Model Depicting the Retail Food Environment and Customer Interactions: Components, Outcomes, and Future Directions," IJERPH, MDPI, vol. 17(20), pages 1-21, October.
    4. Joel Gittelsohn & Emma C. Lewis & Nina M. Martin & Siyao Zhu & Lisa Poirier & Ellen J. I. Van Dongen & Alexandra Ross & Samantha M. Sundermeir & Alain B. Labrique & Melissa M. Reznar & Takeru Igusa & , 2022. "The Baltimore Urban Food Distribution (BUD) App: Study Protocol to Assess the Feasibility of a Food Systems Intervention," IJERPH, MDPI, vol. 19(15), pages 1-17, July.
    5. Amelie A. Hecht & Crystal L. Perez & Michele Polascek & Anne N. Thorndike & Rebecca L. Franckle & Alyssa J. Moran, 2020. "Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior," IJERPH, MDPI, vol. 17(20), pages 1-34, October.

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