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CO-PACKER & CO-PACKING. A certified, insured, regulated facility capable of producing large volumes of product for a client.

F.O.B. “Freight On Board” or “Freight Outward Bound.” Client or distributor picks up product themselves from warehouse . F.O.B. pricing is lower than delivered/distributor pricing to retailers, as the manufacturer has no delivery or warehousing expenses.

UPC. Universal Product Code or Bar Code. Scannable image on package with account code, product code, black bars for computerized inventory tracking & unique product ID.

SKU. “Stock Keeping Unit.” Digitized tracking system for scanning inventory.

LTL. “Less Than Load,” meaning: Not a full truckload.

PALLET (also called “skids”). Square wooden or plastic units, forklift-friendly, which product is stacked upon.

CASE CUBED. Method for factoring actual “footprint” of cases of product.

CONFIDENTIALITY AGREEMENT. Also called “non-disclosure.” Agreement which helps ensure recipes and recipe creation techniques remain confidential.

VAC-PACK. Vacuum sealed method to increase life of perishable products.

SLOTTING FEE. Entry fee charged by retailers to carry selected products, enter SKU into system, ensure shelf space, etc. As of January 2010, some grocery chains charge as much as $20,000 PER ITEM for slotting.

CO-OP ADVERTISING. Whereas a retailer requires a manufacturer to “donate” products in return for the weekly print ad.

FSI. “Free Standing Insert,” i.e., newspaper or magazine insert for retailers’ weekly specials.

FOOD BROKER. An agent or agency who places a brand’s product with a food buyer. Fees vary from 3% - 10%.

DISTRIBUTOR. A company which fulfills orders/delivers to retailers; they often warehouse the product as part of their distribution service; some distributors are also brokers and manufacturers.

PRIVATE LABEL. Whereby a client adds their own label to a pre-existing product, usually one already created/owned by a co-packer. Examples include: Sausages, hot sauces, marinades, ketchup, cheeses, cookies, BBQ sauce, etc.

The Ashland Sausage Company® | 280 Westgate | Carol Stream IL 60188 | TEL: 630.690.2600 | FAX: 630.690.2612
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