Bulletin for suppliers: Purchase price notification in Partner Network has been modified because of updated pricing rules

The pricing rules were updated in the Listing Instruction that came into force at the beginning of June. 

According to the Listing Instructions of June, product prices are reviewed two times a year, whereas previously the prices were reviewed three times a year. Increases and decreases in the purchase price as well as changes to the terms of delivery and modes of distribution may become effective two times a year. Guidance for price changes for listed products webpage has been updated to comply with the rules of the Listing Instructions.

The rhythm of two pricing list periods and the change in the novelty period rule for new products have been updated to Purchase price notification function in Partner Network. Percentage limit rules are not integrated to the Purchase price notification function, and the supplier itself must ensure that the informed prices comply with given limits. Notifying purchase prices for the Winter period 2021 via Purchase price notification function in Partner Network is possible from 10 June 2021. The last day for notification of purchase prices, terms of delivery and modes of distribution is on 3 August 2021 and changes will become effective on 5 October 2021.

More detailed pricing rules were added to the Listing Instructions for new products, products in the selection and in-selection and end-of-life products:

The purchase price of a new product cannot be changed for the first price list period after the product’s listing date: it can only be changed for the price list period thereafter. However, a change in the mode of delivery makes an exception to the rule. If the delivery mode is being changed for the first price list period after the listing date, the purchase price has to be altered in a way that the retail price remains the same. The rules for new products apply to all selection categories. Delisting a product from the selection and offering it again to the sale-to-order selection with a different price before the full first price list period has passed is not allowed. Changes in prices of specialty products and seasonal products cannot be made.

After the first price list period, a price of product in a selection can be changed according to the price list schedule. For products over 5.5% the purchase price can be changed so, that the retail price changes 20 percent at the most (changes of 0.50 euros and below are always allowed). When the retail price changes between 10and 20 percent up- or downwards the supplier has the obligation to clarify the reasoning of the change to Alko’s respective Product Manager. In exceptional cases, which impact the market widely, larger changes can be allowed. For products with maximum 5.5% alcohol or less, the product’s purchase price can be changed after the first price list period according to the price list schedule with no limitations to the magnitude of the change.

The purchase price of an end-of-life product over 5.5% can be changed according to the end-of-life rules, if the product has been in Alko’s selection for at least 12 months and the supplier has made a binding notification of the product’s removal from the selection to Alko’s respective Product Manager. In these cases, the product’s purchase price can be changed according to the price list schedule with no limitations to the magnitude of the change. If the product’s retail price changes more than 20 percent downwards the supplier is obligated to notify Alko’s respective Product Manager with the remaining end-of-life quantity of the product to ensure good customer service and smooth operations. For products with maximum 5.5% alcohol, the product’s purchase price can be changed according to the price list schedule with no limitations to the magnitude of the change also in the end-of-life stage.

Alko’s price calculator updated

The updated price calculator 2021_V2 has been published at the same time. To this version has been added the possibility of a customs duty to the FCA delivery term of the Alko Importation service delivery method, as well as enabling the pricing of meads by allowing a combination of alcoholic beverage tax for wines or intermediate products and pricing group of beers. The price calculator 2021_V2 is replacing the previous price calculator 2021_V1, and the link for the new price calculator has been updated to Price calculator page.