By bob Meyer

Here is an example of a corporate barter transaction that occurred several years ago.

Hardee’s restaurants must fend for themselves with feisty competitors like McDonald’s and Burger King. Recently they had a mountain of chicken filets left over from a limited-time-offer chicken sandwich. Here’s how they solved a major problem.

Hardee’s, a unit of Canada’s Imasco Ltd., unloaded 900,000 pounds of the special poultry and 600,000 pounds of excess sirloin strip from other promotions to a corporate barter company.

Subsequently the barter company moved the meat to food-service brokers. And ultimately, the meat wound up in school lunches, and Hardee’s used the trade credits from the sale, along with cash, to buy more specially prepared chicken for future promotions.

[However, in many cases a client will use their trade credits, along with cash, (called a “cash-blend” purchase) to acquire needed media.]

“This was an alternative to liquidation and a great way to restore value to our excess products,” said Jim Hutcheson of Fast Food Merchandisers Inc., Imasco’s food-purchasing arm.

Major companies use barter in a variety of ways. Such as liquidating inventories and test marketing products abroad. For a list of barter companies see “Top Resources” in the right-hand column.

For corporate barter companies in USA and globally see “Top Resources” in right-hand column

This entry was posted on Friday, February 23rd, 2007 at 8:08 am and is filed under Best & Brightest Barter, Marketing, Purchasing & Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.