Nisa removes Co-op own label criteria and tiered system from rebate model

Nisa is cutting the Co-op own label criteria and tiered system from its Fresh Rewards rebate scheme in a bid to simplify the model for retailers.

Retailer rebates act as cash rewards, and will currently vary depending on whether a retailer falls under the Nisa Flex, Nisa Grow or Nisa Thrive criteria.

These tiers are calculated on weekly order value and the level of Co-op own brand products the retailer stocks. 

Nisa Thrive, for example, holds the maximum rebate of 5.5%. Qualifying retailers have to trade under a Nisa or co-branded fascia and spend £12,000 a week or more, and stock an agreed level of Co-op own brand products.

But from 1 January, Nisa will be moving towards a model that is solely calculated on weekly order value. Retailers will also be able to achieve an additional 0.5% rebate bonus if they have a Nisa or co-branded fascia.

“We’ve committed to making our rebate scheme simpler and you’ve told us the addition of Co-op Credible is adding complexity, which is why from Q1 we’re removing this as a criteria and moving to a more focused spend-based rebate scheme,” said Nisa in a letter to retailers, seen by The Grocer. 

“All customers will still need to place a weekly ambient order to qualify, and from Q1 the required minimum chill and freeze order value will change to £900 per week. The support for the two mandatory allocation schemes will remain unchanged.”

It follows a trial which began in July with 22 retailers, to see how they responded to the new scheme.

A Nisa retailer said: “We are much better off under the revised scheme. The scheme is a lot simpler, and we now have confidence to put even more of our buying through Nisa knowing that the additional rebate we have available to us is making Nisa a really competitive supplier.

“There is now very little processing required, and it is taking less time for our staff to manage the ordering. I felt the previous version was very time-consuming and labour-intensive, so we very much welcome the changes based on the trial we have just been a part of – it’s much better.”

The Fresh Rewards rebate model was originally launched in 2021. In April this year, Nisa revised it so more of its retailer rebates can be claimed as cash, rather than in a store development fund.