Ann: Responses to ASX Query Letters, page-2

Living purchase order to purchase order it seems

Thing is IMO with large retail in USA they generally set targets and your sales contact lets you know if you are meeting targets and at what time / level your product will be at risk of de-stocking. There is so much data available from large retail backend systems to know exactly what each store is selling.

Large retail IMO are experts at managing out suppliers and try and encourage a supplier into discounting, placement, bonus , instore promotion brochure , website placement and every other possible tool to expand sales ( or suck supplier $ dry) knowing of instore revamps well in advance or regular end of seasons and quarters etc. .

A smart ASX would ask to sight documents from the large retailer and prior correspondence or specifically ask company for monthly reports from the large retailer product manager and any reference performance levels supplier was required to keep product stocked. Have tehy already been relegated to lowest shelf 1 line only etc etc

Just ramblings of an idiot who knows nothing . If a product is not performing in a major retailer , volume and total value of turnover and margin for shelf space it gets dropped. That doesn't usually happen without warning unless you are ignorant or warning signs. .