Full Service and Limited Service Delivery

It has come to the attention of this office that some handlers, handler-distributors and distributors are crediting limited service delivery customers for the return of out-of-date milk or milk products and rotation of products n freezers/coolers. This practice has, at times, been referred to as “guaranteed sales.” The Milk Order clearly states that limited service delivery shall not include price marking, case stocking, or credit for returned products.

The Milk Order Section I Paragraph 29 titled “Limited Service Delivery” states:

“Limited Service Delivery means the transfer of milk or milk products to a customer at the door, loading platform or walk-in refrigerated cooler of the customer’s permanent place of business, with the customer assuming full responsibility for such milk or milk products at the time of delivery (except for products determined to be defective at the time of delivery and returned by the customer not later than the fifth day following the date of delivery). This limited service delivery shall not include price marking, case stocking, or credit for returned products, except as allowed above, either at the point of delivery or any other place. Limited service delivery shall only be made to customers who obtain products for resale to the public for consumption off the premises of the customer, Limited service delivery shall only be available to customers who resell milk or milk products in the same form in which they purchased them.

The Milk Order Section I Paragraph 28 titles “Full Service Delivery” states:

“Full Service Delivery means the delivery of milk and milk products to a customer at the customer’s place of business and may include the placing and arranging of products in the customer’s display cases and crediting the customer for the return of out-of-date or defective milk or milk products.”

Substantiated repeated violations of this type will result in legal action.

Peter Hunkar
Director
Colorado Milk Marketing Board