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So about inflation and tariffs
Posted on: May 16, 2025 at 09:14:44 CT
playhard KC
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95569
Member For:
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As i've mentioned, i work for a food broker and i've never seen the amount of price increases as i've seen the last couple of months. Most retailers require 60-90 days notice so there's always a lag in when that price increase hits retailers...you might want to keep that in mind.
Just got this email from a major food distributor this morning. I X'd out the name of the distributor.
Valued Supplier and Broker partners,
Market conditions are evolving rapidly, and retailers are applying unprecedented scrutiny to any price increases regarding import tariffs. To help you navigate this environment—and to minimize rejections or delays—we are clarifying the information XXXX and our mutual retailer partners now require when tariff language is included in a price increase request.
Key expectation: Clear justification letters
• Standard increases: Cite business drivers such as raw material costs, labor, or transportation.
• Tariff related increases:
o Reference the precise duty or government tariff that triggered the higher cost (e.g., “Effective 15 May 2025, the U.S. imposed a 10 % tariff on [commodity]…”).
o Attach or link to the official government notice or HS code change whenever available.
Important: When a justification letter mentions tariffs, every SKU in that submission will be flagged internally as “tariff related.” Please submit tariff-related price increases separate from other non-related SKUs.
• Notice periods: All price changes—standard or tariff related—must honor the contractual lead times set forth in the XXXX Distributors, LLC Supplier Policies & Procedures, as amended (the “P & P”), which typically is 90 days.
• Direct retailer communication: Per standard operating procedures, please ensure you are communicating with our mutual retailer partners regarding your price change, in coordination with your KeHE account team. This preserves business as usual workflows and prevents shipment or invoice delays.
• Regulatory compliance: Ensure your tariff calculations and supporting documentation conform to all applicable trade laws, regulations, and contract terms set forth in the P & P.
We appreciate your partnership and vigilance as we work together to keep shelves stocked and costs transparent. If you have questions, contact your XXXX Category Management representative.
Thank you for your prompt attention to these guidelines.
Just got this email from a major food distributor this morning. I X'd out the name of the distributor.
Valued Supplier and Broker partners,
Market conditions are evolving rapidly, and retailers are applying unprecedented scrutiny to any price increases regarding import tariffs. To help you navigate this environment—and to minimize rejections or delays—we are clarifying the information XXXX and our mutual retailer partners now require when tariff language is included in a price increase request.
Key expectation: Clear justification letters
• Standard increases: Cite business drivers such as raw material costs, labor, or transportation.
• Tariff related increases:
o Reference the precise duty or government tariff that triggered the higher cost (e.g., “Effective 15 May 2025, the U.S. imposed a 10 % tariff on [commodity]…”).
o Attach or link to the official government notice or HS code change whenever available.
Important: When a justification letter mentions tariffs, every SKU in that submission will be flagged internally as “tariff related.” Please submit tariff-related price increases separate from other non-related SKUs.
• Notice periods: All price changes—standard or tariff related—must honor the contractual lead times set forth in the XXXX Distributors, LLC Supplier Policies & Procedures, as amended (the “P & P”), which typically is 90 days.
• Direct retailer communication: Per standard operating procedures, please ensure you are communicating with our mutual retailer partners regarding your price change, in coordination with your KeHE account team. This preserves business as usual workflows and prevents shipment or invoice delays.
• Regulatory compliance: Ensure your tariff calculations and supporting documentation conform to all applicable trade laws, regulations, and contract terms set forth in the P & P.
We appreciate your partnership and vigilance as we work together to keep shelves stocked and costs transparent. If you have questions, contact your XXXX Category Management representative.
Thank you for your prompt attention to these guidelines.
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So about inflation and tariffs - playhard KC - 5/16 09:14:44
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