30.10.2015 Assortment management of non-alcoholic products 2016
Starting in the beginning of year 2016, the monitoring of non-alcoholic product assortment will be done together with the Purchase Plan. The listings of product searches take place twice a year in January and July. All of the new products will be listed on the same day to ensure the visibility. The distribution level of a new non-alcoholic product is based on assortment size classes.
The allocation of non-alcoholic products to Alko shops differs from that of alcoholic products. With a separate allocation instruction the quality and flexibility of the small product category is ensured to answer the local needs. Regarding the non-alcoholic products the Alko shops are divided into two different assortment size classes based on the shop size class and the extend of the demand. The amount of shops with normal non-alcoholic selection is ca. 180 and with wide non-alcoholic selection is ca. 150.
For the first half of the year 2016, 16 products will be allocated to shops with normal non-alcoholic selection (ca. 70% shelf space available) and 29 products to shops with wide non-alcoholic selection (ca. 60% shelf space available). The best-selling products of the assortment’s product categories (red wine, white wine, sparkling wine, beer, cider, mixer) will be allocated to all of the shops that are within the scope of central allocation. Other products to be allocated are based on product sales, overall quality of the assortment and the sub-category levels.
Besides the allocated products, the shops complete their selections with optional products according to the shelf space available and local demand. With optional products the best possible selection of products to answer the local demand is ensured as well as the possibility to react to the changes in demand within a monitoring period.
The demand for the allocated products is evaluated twice a year and the results of the monitoring period will come into effect after one monitoring period has elapsed. The monitoring periods are January-June and July-December.
The selections for the next monitoring period is given to suppliers on March and September. The allocation for the monitoring period 1/2016 will be exceptionally given on November 2016.
Sales requirement and delisting of non-alcoholic products
The products do not have a sales requirement. However, the 3 year service product period is being followed with the service products, unless the product has been transferred to main products based on its sales. The product is no longer a service product if the annual sales of a service product exceeds 2000 sales units or a turnover of 20,000 euros without tax.
If a product is closed for orders for over 3 months, the product will be delisted.
A product can be delisted also for other reasons indicated in Alko’s terms of purchase and delivery.
If you have any questions, please contact the assortment manager Petri Aalto (firstname.lastname@example.org)