Procedures for Guaranteed/Non-Guaranteed …

1 August 27, 2016 Page 1 Procedures for Guaranteed/Non-Guaranteed product disposal / order errors /Damaged Beer & Wine/Swell Allowance/Write-offs Wholesaler guaranteed & Non- guaranteed products Vendor (DSD) guaranteed products Wholesaler ordering errors /mistakes Handling of markdowns Damaged Beer/Wine Swell Allowance Juice write-offs Unauthorized products (DSD or Wholesale) guaranteed wholesaler products disposal SM is to set up a designated bin in the backroom of their perspective location and label it as OOD guaranteed wholesaler product . On audit day, the TM will verify using the guaranteed / non- guaranteed & swell allowance item list.

2 The OOD or damaged products is to be disposed of properly by the TM and SM before leaving the site or the next scheduled visit by the TM. Stores that have excessive amounts will need to have prior approval from the DM for any products that are being written off. 100% guaranteed All-Chappell Hill, Cigars, Mark Ten, Moist Tobacco, VUSE, Zonnic Nicotine Gum, Slim Jim s, Krave & Chef s Cut are fully guaranteed therefore are not part of the swell allowance and should be sent back to wholesaler on the proper forms for 100% credit. After receiving authorization back from the wholesaler, the SM would need to process the credit invoices within Envoy. If it s been over 3 weeks since submitting your request for credit, you ll need to forward the original communication including any supporting documentation to the buyer for their assistances in getting your credit.

3 Juice write offs SM is to set up a designated bin in the backroom for holding any Bolthouse Juice, Fairlife Milk, Campbell Juices, Naked Juice, Odwalla, Rockin Refuel, Simply Juice or ARGO Tea that are OOD. The category manager will send out a survey twice a year for capturing these OOD items for purpose of writing them off. Auditors will count the juice at full retail, until the survey has been approved, and the SM has keyed the amount approved into Envoy under adjustments using the corresponding adjustment code. TM will verify and dispose of properly as needed. August 27, 2016 Page 2 Vendor (DSD) guaranteed products SM is to set up a designated area in their perspective backroom for the holding of OOD and/or damaged products for each major DSD vendor.

4 SM should be diligent in working with vendors on a weekly basis to swap out and/or receiving credit for any OOD and/or damaged products. Doing this will help keep the damages to a minimum, and keep our backrooms more organized Swell Allowance for guaranteed Each location will receive a swell allowance for those guaranteed items properly handled and disposed of at the end of each quarter after accounting has closed the quarter. The swell allowances amounts will be communicated to the store from accounting via email. The SM would then need to key the amounts given to them from accounting into Envoy under adjustments using the corresponding adjustment codes.

5 It will be the TM s responsibility for verifying that each location has entered their swell allowances correctly each quarter. August 27, 2016 Page 3 Non- guaranteed wholesaler products SM is to set up a designated bin in the backroom of their perspective location and label it as OOD Non- guaranteed wholesaler products . On audit day, the auditor will verify the items being written off compared to what s listed on the write off sheet. After the auditor has confirmed the items, you ll need to enter the dollar amount into Envoy under adjustments, using the corresponding adjustment codes. This adjustment needs to happen prior to the closing of the day and pulling your BF.

6 The non- guaranteed items can be verified using the Guaranteed/Non-Guaranteed item list. The items will need to be disposed of properly by the TM and SM before leaving the site or the next scheduled visit by the TM. Ordering errors If an ordering error occurs, example: you thought you order 6 each, and you received 6 cases or you received something you didn t order ! The SM needs to return these items back to the wholesaler, and has 24 hours to communicate via email the error directly to the wholesaler, and TM. If error is found during the check-in process, please have the driver verify and make note of it on the delivery manifest. All ordering and miss pull errors need to be written up on the proper forms, then submitted to wholesaler for credit.

7 After receiving authorization back from the wholesaler, the SM would need to process the credit invoices within Envoy. If it s been over 3 weeks since submitting your request for credit, you ll need to forward the original communication including any supporting documentation to the buyer for their assistances in getting your credit. Damaged Beer/Wine SM is to set up a designated area in their perspective backroom for the holding of damaged/broken products for each company. For safety, no broken glass should ever be kept with your damaged products. The SM should be diligent in working with vendors on a weekly basis to swop out or repackage any broken packages.

8 For those that can t be repackaged, SM will track the products (no write off will be done, but can be used during an audit investigation if needed) and TM will verify and dispose of properly as needed. Stores that have excessive amounts will need to have received prior approval from the DM. August 27, 2016 Page 4 Markdowns Marketing will provide a list of slow moving and/or discontinued items that will be discounted in the price book, and will be placed in a designated bin/rack provided by the Marketing Department for fast sell thru. No item should remain in the bin/rack more than 30 days. TM should monitor sales of the discontinued items, and transfer slow moving items to other location(s) that can sell thru faster.

9 TM will discard of any item in the bin for 30+ days. These items shouldn t be written off. Unauthorized Products Items received by a DSD vendor that comes up as not of file when scanning during the check-in process, shouldn t be taken; they should be set to the side and removed from the invoice. If an item is received, and later determined to be an unauthorized (not on your POG) item for your store. It should be pulled from the shelf and held for the vendor to pick up and issue credit for the item. Item s received from the wholesaler that is determined to be something that is not in your POG. Should also be processed for return/credit by the guidelines provided from the wholesaler.

10 Don t keep something just because it scans, and you think you can sell it. If it s not on your POG it s unauthorized and needs to be returned for credit.