Nestle had the highest level of capital required and the lowest gross margin. That means they require heavy investments yet they have the lowest return per investment! Remember this distributor business requires return profits. It also requires a longer payback on returns. How does one make money when it’s constantly being eaten up by Nestle’s corporate greed? They require serfs not partners.
They also have the lowest trade support for promotional activities. And incredibly, they did not factor in bad debt, bad order allowance, taxes, and other costs that regularly eat into profit margins.
They are the true Pacmans.
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