WHITE SULPHUR SPRINGS, W.Va. -- C&S Wholesale Grocers is pursuing new partnerships with vendors to help succeed with diversification beyond its longtime business model, said Ron Wright, president of C&S Holdings and its ES3 operation.
The Keene, N.H.-based company hopes to leverage supplier relationships to support its recent agreement to acquire 104 stores from Bi-Lo Holdings and its stepped-up supply business with independents that followed the acquisition of Fleming assets in 2003, Wright said during a panel at the Grocery Manufacturers of America's Executive Conference here. Those transactions broadened C&S' retailer involvement from a business that primarily supplied chains to one with growing sales from retail operations and from distribution to independents.
"Support of our independents is a competency we need to come up to speed on very quickly," he said. "So we'll look for a lot of help from the manufacturer community. You guys have the expertise. We'll be a sponge, very attentive."
C&S' programs with vendors include participation in food shows; co-sponsorship of seminars for retailers on how to grow their businesses; share groups; and promotional efforts.
"There are big opportunities to work with us," he said. "The independent retail operator represents the best opportunity for manufacturers to diversify their business and ensure a healthy competitive environment."
Wright said one of the challenges for suppliers is to figure out how to grow with C&S as it becomes a bigger and more complex company. He said C&S and its vendor partners have complementary attributes.
"You guys are the marketers and we're the distributor," he said. "We want to find ways to capitalize on these strengths."
He said C&S views itself as a supply chain solutions company, "and we see an opportunity to partner to take costs out of the supply chain. That's the next big frontier for us."
C&S' businesses target a number of different classes of customers, Wright said. The wholesale operations serve self-distributing chains and independents. The retail business caters to consumers. The company's ES3 business provides distribution solutions for manufacturers.
The retail component will be an education tool for C&S with learnings that can be used to benefit independent retail customers, he said.
"This will all be good news for our independents," he said. "We'll roll out a suite of technology products to support this Southeast retail business in a big way. These will include competitive price maintenance and loyalty cards. Then we'll roll these out to our independent customers to continue to strengthen them strategically."
Al Plamann, president and chief executive officer, Unified Western Grocers, another participant in the GMA panel, said partnerships are a good way for suppliers to emphasize their brand messages.
Unified partners with vendors for parking lot and weekend store-front events, among other projects.
The company's Cinco De Mayo Festival is a major opportunity for suppliers to showcase their brands and raise their profiles, Plamann said. This year's event at a Los Angeles park attracted more than 150,000 consumers. It included product sampling, interactive games with product promotions, mascots and other features.
Plamann said Unified is committed to deepening its knowledge of the brand needs of its supplier partners.
"We need to understand your brand strategies better," he said. "We can do a better job with events that way. We have a couple of large manufacturers that we currently work with that have shared brand strategies with us. It's been really successful in growing their sales."
Unified's technology tools for suppliers include its vendor portal, which enables manufacturers to reach independent retailers with deals. The portal facilitates the introduction of new items and promotions to retailers.
Another tool is its vendor payment inquiry portal (VPI), which enables suppliers to see information about payments and deductions.reach independent retailers with deals. The portal facilitates the introduction of new items and promotions to retailers.
Another tool is its vendor payment inquiry portal (VPI), which enables suppliers to see information about payments and deductions.
