Sagacity Tea: What Direction for Growth?

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Kate Moran, CEO and cofounder of Sagacity Tea, a small, Vermont-based ready-to-drink tea brand, is considering a consumer-product group (CPG) broker's proposal for the product's launch in several cities along the East Coast of the United States. The commitments in the proposal include various forms of trade promotion, including discounts, coupons, and slotting fees (SFs), the latter being upfront payments to retailers in the form of free goods in return for shelf space. Moran must decide whether to accept the proposal or to pursue another expansion options such as online sales and a pop-up store.
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