Retail Deductions: A Trap for Mid-Sized CPGs
- The HRG Team
- Sep 25, 2025
- 1 min read
When it comes to deductions, mid-sized CPG suppliers face a unique disadvantage.
They’re large enough to be attractive targets for retailers’ deduction programs—but not large enough to have a full-time, specialized team to manage disputes. The result? Millions quietly slip away each year.
Why Mid-Sized Brands Are at Risk
Volume creates exposure. Enough shipments and invoices flow through to generate deductions at scale.
Resources are limited. Unlike billion-dollar giants, mid-sized brands can’t staff full-time recovery departments.
Attention is divided. Sales, operations, and finance teams are already stretched thin. Deductions get deprioritized.
The outcome is predictable: deductions stack up, disputes fall through the cracks, and margins erode.
That’s why mid-sized brands lose the most—not because they perform worse, but because they lack the infrastructure to fight back.
The Bottom Line: CPG supplier deductions are not just a cost of doing business. They’re a preventable drain on growth. And with the right partner, mid-sized brands can recover more, faster, without building an in-house team.
Take Action: If deductions are eating away at your growth, HRG can help. We’ve recovered over $1B for suppliers just like you—brands big enough to lose millions, but too lean to fight alone.
