The Good Food CFO podcast · The Good Food CFO

KeHE Uncovered: Real Case Study of a Food Brand's First Payout

·41 min·2 clips

A brand invoiced $68,267 and received a $13,345 check from KEHE.

1. The Good Food CFO Podcast episode focuses on KEHE payment timing and chargebacks for food brands. 2. Host Sarah Delavan and producer Chelsea Steer lead the discussion because Sarah wrote the newsletter and Chelsea presses for clarifications. 3. The episode asks what actually happens when a brand starts selling through KEHE and waits for the first payout. 4. Sarah says KEHE’s contract can hold a new supplier’s payment until the initial POs in all DCs have sold through. 5. She explains that POs are purchase orders and DCs are distribution centers, so one shipment can affect multiple warehouse sell-through requirements. 6. Sarah clarifies that sell-through means the product must move from KEHE to a retailer before the first payment is released. 7. She notes that brands can wait more than 90 days and sometimes up to six months for those initial POs to sell. 8. Sarah adds that KEHE may reorder before the first POs are sold through, which can force brands to produce more inventory before receiving payment. 9. She says standard net 30, net 60, or net 90 terms do apply only after the initial sell-through condition is met. 10. She also points out that KEHE calculates payment from the later of invoice receipt or product received and available for sale. 11. Sarah describes a case where $68,267 was invoiced to KEHE and the brand received a $13,345 check. 12. She says that payout equals 19.5% of invoiced value before subtracting cost of goods sold. 13. Sarah walks through chargeback codes for ready-date non-compliance and says the broker tried to verify whether the pickup was actually late. 14. She explains that a spoilage allowance can be charged without evidence that the product actually spoiled. 15. Sarah defines intro allowances and free fills as onboarding costs that can apply when opening a new retailer or distribution center. 16. She says the brand’s chargebacks included $22,660 tied specifically to intro allowances and free fills. 17. Sarah notes that manufacturer chargebacks, missed promo fees, ad fees, and product-not-received adjustments can all reduce the final check. 18. She and Chelsea describe the tone as detailed, practical, and numerically driven, with frequent back-and-forth clarification. 19. Food founders evaluating KEHE, UNFI, or distributor cash flow will get the most value from this episode. 20. Brands seeking light commentary without spreadsheet-level detail may skip it.

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