Distributor of Cigarettes, Candy & Sundries to Convenience Stores

Company Overview

Distributor of Cigarettes, Candy & Sundries to Convenience Stores - A large wholesale distributor of tobacco, candy, groceries and other products to convenience stores, drug stores and other mass merchandisers in the Eastern US.  The Company carries over 11,000 products and it’s annual revenue is over $6 billion.

Engagement Overview
•  The Company’s bank requested that the Company find a new lender.

•  FDP was retained to review the Company’s business plan and assist in raising new financing.

•  Identified and implemented nearly $15 million in strategic and tactical initiatives to restore profitability.
•  Multi-million dollar price increase with largest customer resulting from FDP’s customer profitability analysis
•  Targeted non-commodity price increase strategy
•  Promoted aggressive sales calling plan to generate new volume
•  $5 million expense reduction program
•  Identified opportunity to optimize promotional merchandise inventory leading to $2 million profit improvement

•  Analyzed profitability by customer for major customers and worked with management to develop plans to increase margin and improve cash flow.

•  Assisted management with operational initiatives including:
•  Video review of customer shipments to reduce shortage claims
•  Installation of “back stock” inventory locator system at each DC

•  Identified and solicited proposals from numerous prospective lenders.      

•  Coached management on presentations to prospective lenders and assisted in negotiations with lenders.
Results
•  Identified and implemented nearly $15 million in strategic and tactical initiatives to restore profitability.

•  Turnaround plan was well received by lenders; banks that initially sought to exit the credit participated in the new line.

•  Secured $150 million line of credit.

•  A senior officer of Fort Dearborn now sits on the Financial Advisory Board of the Company.