Wholesaler picks up accounts from rival
BGA-Purvis, the Royal Gazette has learned.
Winter-Cookson's move showed the wholesale sector remains highly competitive a year after a series of major consolidations.
Winter-Cookson executive Mr. Keith Winter said the largest of the accounts was Robin Hood Flour Mills, the distributor of the most popular flour in Bermuda and a list of other products.
Ocean Spray, with a line of juices and cranberry sauces and Lipton Tea USA were the other two accounts that moved.
Winter Cookson retail sales manager, Mr. Junior Dunstan, said the firm was placing orders for full containers as soon as the new contract takes effect on March 1.
"We have become a lot more aggressive in rounding out our supplies,'' he said. "We have everything in place to service our clients.'' Wholesalers act as middle-men, bringing in the product lines for sale to supermarkets, hotels and restaurants.
Mr. Winter noted said his firm had lost one account to BGA Purvis last year, but added: ''Any one of these three accounts would more than compensate for the loss of the Beecham Kline account.'' The Robin Hood Flour Mills account, said BGA Group of Companies Chief Operating Officer, Robert Skelley, was in conflict with Purity, another flour product that BGA also represented.
He said the turnover was due in part to the difficult time experienced by the company during the BGA merger with Purvis.
BGA has experienced rapid growth in the last few years under president Mr.
Ward Young, first merging with second-tier distributor Weldon and then pulling off the major merger with Purvis, which was at one time the Island's largest wholesaler.
"The loss totaled about eight percent of the Purvis business. But it was not significant enough to undermine the health of the company,'' he said.
"We are in discussions with three suppliers that are currently with our competitors. If the talks come through, we could get that eight percent back real fast. We have already this year picked up new lines with familiar names -- Hillshire Farms and Rich's.
The Purvis division had a better 1993 than expected, he added.
But the BGA COO, who just took over in November, admitted it was not a good year.
"The basics could have been done better,'' he said. "The management group is coming together and beginning to gel. We are optimistic for the future. Doing the basics is the first part of business growth.
"(We have to) identify those products that we don't carry but should and start a dialogue with those companies. It is blocking and tackling or distribution 101. Bring in the right products at the right price and get them to the customer.'' Mr. Junior Dunstan.