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Marketing contribution (WKZ)

A payment or benefit a supplier gives a retailer to fund extra visibility for its products: flyer ads, checkout placements, displays or price promotions. In German it is the Werbekostenzuschuss (WKZ) (Lebensmittel Praxis, 2020).

Why it matters

It can be paid in cash, free goods or display units. If it isn't tied to a clear service, it becomes just another discount, so brands should agree in writing what they get for it.

Sources

  1. Lebensmittel Praxis: what is a WKZ? (2 Sep 2020)