Handling Deductions is Smoother than Butter for 4th & Heart

A deduction management solution that actually worked. This is what Max Dichter, CEO of ghee butter brand 4th & Heart, was seeking in 2022 when he turned to Promomash for help with an increasingly overwhelming amount of deductions. Having tried multiple approaches in the past with limited success, the 4th & Heart team knew they needed something more scalable, efficient, and reliable as the brand continued to grow.

The Challenge

Before partnering with Promomash, 4th & Heart cycled through a variety of approaches to managing trade deductions, having a hard time finding the right fit for their needs. While prior approaches worked temporarily, they mainly either created more work for the team, came with high costs, or simply didn’t align well with the company’s internal processes.  

Communication, accuracy, and tech integration were some of the key tactical issues 4th & Heart faced previously. This resulted in an overly time-consuming and error-prone process to deduction tracking and dispute resolution, ultimately putting pressure on the finance team and compromising overall financial accuracy.

“We were always optimistic about implementing a new approach to deduction and dispute management, but found ourselves constantly disappointed and in search of yet another solution,” Dichter recalled. 

The company needed a partner that could improve deduction recovery, reduce the manual workload, and seamlessly fit into their growing operational framework.  

The Solution

After evaluating several options, 4th & Heart selected Promomash CPGenius for Deductions - a complete, end-to-end deduction management service and platform - because of its ability to adapt to their unique accounting workflows and integrate with QuickBooks Online. The Promomash team worked closely with 4th & Heart’s finance team to build customized reports that supported more accurate data ingestion and improved financial reconciliation.  

Promomash approached onboarding as a collaborative process, taking the time to understand how the 4th & Heart team operated and tailoring the system accordingly. Adjustments were made to align with their month-end close cycle, and Promomash quickly became an extension of the team, not just a service provider.  

“There was an upfront lift getting things properly setup, but I think Promomash was fast to learn the way we do things and that quickly paid off shortly thereafter,” said Dichter.  

Results So Far

Since implementing Promomash for deduction management in late 2022, 4th & Heart has seen measurable improvements in both financial recovery and operational efficiency:

• In 2024 alone, invalid deductions recovered provided a 4.6X return on the cost of service.
  4th & Heart has recovered more from improper deductions with Promomash than with previous deduction management solutions used.
  
  
• Disputes are resolved more quickly. The finance team is no longer bogged down by the manual processes that once consumed valuable time.
  
  
• The substantial returns feed growth. The improved cash flow has only further enabled the company to scale as rapidly as it has in recent years. 
  
  
• Time savings have also been substantial. Dichter estimates that his team is saving tens of hours each month now that oversight of deduction management requires significantly less effort. 

Overall, the results produced from working with Promomash has allowed the 4th & Heart finance team the bandwidth to focus on more strategic, higher-value work.  

“It’s doesn’t require nearly the same amount of time it used to previously,” said Dichter. 

Beyond the operational wins, the company has seen a noticeable improvement in team morale. With fewer frustrating errors and greater confidence in their data, the finance team is better equipped to provide insights that support key business decisions.  

"We’ve seen a major improvement in process.…and team morale. I think that’s one that people probably don’t measure or think about, but it’s really important, especially in finance roles.”  

Next Steps

With Promomash now fully integrated, 4th & Heart is looking ahead to further refine and enhance its deduction processes. The team is focused on improving deduction mapping to reduce the need for manual adjustments, exploring additional automation to increase reporting accuracy, and continuing to ensure a seamless connection with QuickBooks Online without compromising data collection capabilities.  

Dichter emphasized that effective deduction management becomes increasingly vital as a CPG brand scales.

“In year one, it may not be such a big deal because the dollars are small. In year two, it starts to become more noticeable. By year three or year four—now your deduction dollars start to really add up, and the losses become very real.”  

By partnering with Promomash, 4th & Heart is preventing small deduction issues from turning into major financial problems and building a more resilient, scalable business as a result.  

“Overall, things are really good. We appreciate the partnership with Promomash, and we look forward to our growth together,” said Dichter.  

Is your CPG brand ready to take control of deductions? 
Contact us to explore how we can help you recover more, save time, and scale smarter.