-- in-house expertise for sourcing the right product and for creating
effective retail marketing programs;
-- facility and fleet modifications to upgrade and enhance the cold
supply chain, including chill docks;
-- state-of the-art ordering devices to improve the simplicity and
accuracy of ordering "fresh" while minimizing inventory costs; and most
importantly,
-- experience gained in working with both suppliers and retailers of
"fresh" over recent years.
The Company was the first to initiate several industry leading initiatives,
including a turn-key, open-air cooler program featuring national brands of
juices, salads, fluid dairy, value-added fruits and vegetables, and other
fresh items.
Core-Mark and other distributors have been in the frozen and refrigerated
business for many years, supplying fast foods and certain grocery staples.
"We recognized that, in order to source, market, and properly handle this
new wave of highly perishable product, we had to create another level of
capability, across all aspects of the business, from fleet specifications
to organization expertise," stated Michael Walsh, President and C.E.O.
Today, for example, over 40% of Core-Mark's 700 tractor-trailer fleet
consists of tri-temp trailers. The dual-temps, which distributors
traditionally use, don't meet Core-Mark's standards of providing quality
assurance for the new, highly perishable products now in demand. Having
made the investment and gained the experience, The Company is adopting a
fresh image commensurate with its capabilities and the demands of the
convenience retail industry.
"Fresh" convenience retail leaders have relied on self-distribution methods
to augment their traditional supply chain sources. Core-Mark believes that
higher delivery frequency service provided by the primary/broadline
supplier represents a quicker and more cost effective alternative to enable
all convenience retailers to partake in the fresh movement. Connecting
fresh bakery and fresh commissary items to the convenience retail offering
are but two examples of Core-Mark's focus in helping its customers bridge
the gap to fresh.
"Not too many years ago," Mr. Walsh said, "the notion of a broadline
distributor handling milk would have warranted little or no consideration.
Today, we enthusiastically and effectively service over 3,500 convenience
retail stores with milk, ranging from full service to no frills, as
determined by our customers."
Core-Mark's newly rebranded website, featuring the new logo, truck design,
and examples of its "Fresh" programs, is available for viewing at
www.core-mark.com. This bold visual representation of the brand will also
be utilized in the company's new advertising campaign, and in its future
marketing initiatives to help generate greater retailer awareness of its
expanded capabilities.
Core-Mark
Core-Mark is one of the largest and most valued marketers of fresh and
broad-line supply solutions to the convenience retail industry in North
America. Founded in 1888, Core-Mark provides distribution and logistics
services as well as marketing programs to approximately 24,000 retail
locations in 50 states and five Canadian provinces through 26 distribution
centers, two of which Core-Mark operates as third party logistics
providers. Core-Mark services traditional convenience retailers, grocers,
drug, liquor and specialty stores, and other stores that carry consumer
packaged goods. For more information, please visit www.core-mark.com.
Contact Information: Contact: Ms. Milton Gray Draper Director of Investor Relations 650-589-9445 x 3027 mdraper@core-mark.com