This company has built a niche beverage distribution business that's unique product based, including proprietary brands that have strong market presence in the Northern California market. In addition the company has diversified their products as well as a diverse customer portfolio, large chain as well as up and down the street business. The company is currently in a substantial growth phase as profits are up 30% over last year (YTD) as they continue to gather additional chains in the large regional grocery stores and national convenience store market .
The products have a strong demand as they come on line and the clients are motivated to add additional stores. The large grocery chains that are constantly expanding and would like these products in all their stores. In addition they have a broad base of smaller clients so the concentration of sales is spread across the Northern California market. This presents an incredible opportunity for growth by expanding their geographical reach. This would be an excellent bolt on opportunity for any large distributor of beverages or snack items and could easily expand the geographical reach and service more of their client's additional stores. They continue to gain market share.
They develop with the clients, unique displays that showcase the products and create the nostalgic look that entices customers to browse the large varieties of beverages they offer and creating a go to point for the customer . This model has a proven track record and currently sells to most of the regional grocery chains , deli's , bakeries , liquor chains and local restaurants with the majority of them being the large grocery chains that have stores in many other areas of the state that can easily be expanded into California, Oregon or Nevada. The company supports excellent inventory management with 12-14 turns per year.
They have a general manager in place who handles operations on a day to day basis . They outsource the production of their proprietary products and have managed steady controlled growth. The company has very strong cash flow that minimizes working capital. Sales for 2018 are tracking for 3 mm with a healthy SDE of over 363,000 . Now upon retiring, the company offers a very unique opportunity for a strategic acquisition into the thriving Northern California market. Profits up 30% this year alone with plenty of growth on the horizon.