GLOSSARY

Ad Slick

Camera-ready print ads, such as illustrations, company logos, and copy, provided by retailers and manufacturers for newspaper advertisements. Also known as slicks.

Antioxidant

A molecule that inhibits the oxidation of other molecules. The oxidation reactions can produce free radicals. In turn, these radicals can start chain reactions that have toxic effects and cause cell damage. Antioxidants terminate these chain reactions by removing free radical intermediates, and inhibit other oxidation reactions.

As Advertised

A sale price for an item featured in a weekly ad that is lower than the regular price.

Back Order

Out-of-stock items that cannot be shipped with a customer’s original order and are sent to the customer as soon as available.

Bar Code

A unique identification code on products, pallets, and coupons. The code is read by an electronic scanner for receiving, ordering, and inventory-control purposes.

Brand

A brand is the symbol that identifies one seller’s product as distinct from those of other sellers. The word brand refers to the company that is strongly identified with a brand.

Brand Share

A percentage of category sales attributed to a specific product brand.

Broker

An individual or firm that charges a fee or commission for executing buy—and-sell orders for a manufacturer.

Buyer

A person who makes a purchase.

Calendar

A chronological list by month of the major trade shows pertaining to the supermarket industry.

Case Count

A receiving procedure that accepts an invoice’s total-order case count instead of verifying the contents of each case.

Category

A division of products or things regarded as having particular shared characteristics.

Category Review

A formal assessment or examination of product with the possibility or intention of including product in schematic.

Chargeback

A manufacturer’s bill to a retailer if the retailer fails to meet stated performance requirements.

Direct Sales

A group of salespeople employed by a manufacturing company to work exclusively in promoting and selling its products. Direct sales can also be selling directly via the Internet.

Direct Sales Distributor (DSD)

A full-service distributor who often sells to C-stores and the service industry. However, many DSDs do also service the major big-box retailers and natural foods stores as secondary distributors.

Distributor

An agent who supplies goods to stores and other businesses that sell to consumers.

Entrepreneur

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Food and Drug Administration (FDA)

The Food and Drug Administration (FDA or USFDA) is an agency of the U.S. Department of Health and Human Services, one of the United States’ federal executive departments.

Free-Fill

A free case of product for secure shelf space.

IRMA

WFM database of approved products.

KeHE

International natural product distributor. KeHE is one of the biggest natural product distributors in the world.

Kosher

To be kosher, a product must go through certification and comply with a strict policy of kosher food laws, including cleanliness, purity, and quality.

Merchant Chargeback (MCB)

MCB is a discount percentage that the vendors/manufacturers agree to charge back to themselves through their distributor. In turn, the distributor does not charge the retailer for the agreed-on percentage.

Nature’s Best

National natural foods distributor.

Non-GMO Project

A nonprofit organization educating consumers and verifying whether they are consuming genetically modified organisms.

Off Invoice (OI)

A discount is created through the distributor and authorized by the manufacturer. It’s often created over a period of time supporting a promotion. Or a continued discount created for a specific buyer or store chain.

Organic

Any food grown or meat raised without chemicals, pesticides, and herbicides.

Promotion

An activity that supports or provides active encouragement for the furtherance of sales for a product.

Purchase Order (PO)

A purchase order is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed-on prices for products or services.

Schematic

A set of approved products in specific space slots.

Sell-Through

Sell-through refers to the percentage of units shipped that are actually sold. Sell-through is always expressed as a percentage. Net sales essentially refers to the same thing, in absolute numbers. Sell-through refers to sales made directly (direct sales). Sell-in, on the other hand, refers to sales made through a channel.

SPINS

Leading provider of retail and consumer insights, analytics, and reporting for the natural, organic, and specialty industry.

Stock Keeping Unit (SKU)

SKUs are used to manage inventory. A SKU is a distinct item, such as a product or service, offered for sale that embodies all attributes associated with the item and that distinguishes it from all other items. For example, if a brand of pickles has five SKUs, this means it has five different types of pickles.

Super Fruit

A super fruit is considered a new food and beverage product. Super fruits have not been defined by scientific criteria that would allow consumers to objectively assess nutrient value and potential for furnishing health benefits. Consequently, the term super fruit is used liberally to include a growing list of fruits having sparse scientific evidence for being “super” other than being relatively unknown to common consumers.

Trade Show

Trade shows are exhibitions for manufacturers in the natural industry to showcase and demonstrate their new products and services. Generally trade shows are not open to the public and can be attended only by company representatives and members of the press.

Turnover (TO)

An order submitted by the buyer, sales rep, or distributor for product sale to a buyer and/or retailer.

United Natural Foods, Inc. (UNFI)

An international natural product distributor. Considered one of the biggest and most successful in the world.

Universal Product Code (UPC)

The UPC, along with the related EAN (International [formerly “European”] Article Number) bar code, is the bar code mainly used for scanning trade items at the point of sale, per GS1 specifications. UPC data structures are a component of GTINs (Global Trade Item Numbers).

Want-a-preneur

Someone who desperately wants to be an entrepreneur but isn’t.

Whole Foods Market (WFM)

WFM is an influential national food chain in the natural product industry.