They are fees that suppliers pay distributors for product placement on store shelves. Although common, these fees are neither uniformly requested nor offered. Well tested, innovative products can and do reach consumers without slotting allowances.
Many supermarkets waive any such fees for minority vendors and for suppliers in their communities.
The most common allowances are for new products so-called new product introduction fees. The amount can be as small as several hundred dollars to have a new product introduced in a single store to many thousands of dollars for a chain-wide promotion. In some instances, manufacturers provide free cases of new products to help retailers gauge consumer demand. Since each situation is unique, these fees are typically negotiated individually and no industrywide numbers are available. The practice may be best understood in the broader context of a major shift in how manufacturers spend their promotional dollars.