LEICESTER, Mass. -- Millbrook Distribution Services here will begin shipping private-label health and beauty care to some 40 wholesalers under a distribution agreement signed with Shurfine International, Chicago, last month.
"The fact that Shurfine chose Millbrook over the other competitors is testament to our team's drive and dedication," said Bob Sigel, president and chief executive officer. "Millbrook looks forward to doing business with Shurfine." The deal is expected to earn Millbrook $15 million to $20 million on an annual basis.
The Shurfine business will be administered by Millbrook Direct, the company's full-case division based in Harrison, Ark. Millbrook has three other distribution centers: in Ozark, Ala.; Greenville, N.C.; and here.
Millbrook, which also offers merchandising services, will act as a mass distributor of HBC products for Shurfine, said John Massaua, senior vice president at Millbrook.
"We will be shipping to approximately 40 wholesalers throughout the country. How many retail stores they have I don't know. There are hundreds.
"We are facilitating and supplying merchandise for organizations that need distribution services but that don't necessarily need us to be service merchandisers of the product. This is the ultimate in unbundling of services, if you will," said Massaua.
Shurfine International has an array of about 500 private-label HBC items, including analgesics and shampoos. The company is growing rapidly in the HBC area, said Rick Tuma, vice president of the grocery division at Shurfine. "We were looking to work with a company that is committed to HBC. Millbrook obviously wants to be at the forefront of this industry and, therefore, was in our opinion the logical choice. Shurfine is growing and will be around for a long time. We were looking to do business with a company that we felt would be stable, grounded, and committed to a long-term partnership. Millbrook is that company," he said.