For Sale: Full-Service Direct Store Delivery Distribution - Los Angeles County

Current Status: Active     Posting #: 261425     Last Refreshed: 4/9/21    
This full-service direct store delivery (DSD) wholesale distribution business boasts a sought after array of Southern California grocery markets located from Fresno to San Diego and the coast to the Inland Empire. The company has been in business for over 20 years and regularly boasts revenues that have increased from $2.8 to $5.4 million over the past 5 years. The company works with the largest and most sought after retail chains including Ralphs, Vons, Target, Bristol Farms and more. They specialize in a specific product category that is delivered to over 700 locations via 18 independent distributors, each of which services 30 50 assigned locations along company owned routes. The firm has a full-time owner and a general manager.

This business operates out of a 6,000 square foot office warehouse that leases for an attractive $6,072 per month on a secure lease. The company has the necessary equipment to connect at the retail location and upload inventory data and generate an invoice that results in a same day settlement. The firm's food manufacturers are paid on 30-45 day net terms.

Competition exists from DSD distributors as well as supply chain model alternatives that may include manufacturers that ship directly, large scale distribution companies, DSDs that represent other brands and even those with centralized distribution models (e.g. Wal-Mart).

This company may grow via several available avenues. With scaled product purchases volume discounts may be leveraged and margins increased. Similarly, the breadth of the product line may be expanded or additional retailers may be added in the existing geography to increase route efficiencies or as merited the company may expand its geographic coverage. Also, the firm often takes a small hit on retailer-brand negotiated promotions or sales discounts. New management may evaluate revisiting existing arrangements so the distributor is not impacted by discounts. A strategic investor may obtain the firm's valuable vendor numbers to gain coveted store access that may otherwise be infeasible, impracticable or time consuming and costly.