Kroger Extends Payment Terms
On June 26th, Kroger announced they will be standardizing payment terms to net 90 days which take effect on August 1, 2018. Kroger is doing this to smooth out its working capital and, ultimately, its cash position.
Organizations that represent produce suppliers, such as National Association of Perishable Agricultural Receivers (NAPAR), are claiming this violates the rights granted to produce suppliers under the Perishable Agricultural Commodities Act (PACA) of 1984. It remains to be seen if, and how, the government will react to his news.
In the interim, brands need to be thinking about their own working capital and cash position. Gourmet Growth is here to help.