Phusion Puts Forth a Plan
Phusion Projects, makers of the newly banned Four Loko by the FDA, has put forth a plan to address the unsaleable distributor inventory in the trade. The plan seeks to reinburse distributors for 70% of the invoiced cost of their inventory (which includes shipping but not taxes) over the next 120 days (estimated at about $30 million). Under the terms of their Plan of Action, distributors are to stop selling caffeinated Four Loko immediately, quarantine it, count it, and have a Phusion Projects employee sign off on the amount in inventory. Phusion will then issue a credit memorandum to the distributor equal to 70% of the original invoiced cost of the inventory, to be applied to future purchases of new non-caffeinated Four Loko, which is in production as this is written and will begin shipping next week. On new orders, Phusion will credit up to 20% of the invoice price on new orders until the distributor is made whole
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