Competitive Advantage

Competitive Advantage:

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Our executive management and the management of our acquired’ operations, have developed long-standing customer relationships, over many years, which we believe are among the strongest in our industry. We believe a key driver of our strong customer loyalty is our superior service levels, which include product sourcing, quality products, accurate fulfillment of orders, timely product delivery, competitive prices and a high level of product sales & marketing support. We believe that our high distribution service levels are attributable to our experienced inventory planning, replenishment department, sophisticated warehousing, inventory control and distribution systems.

Furthermore, we offer next-day delivery service to a majority of our active customers and offer multiple deliveries each week to our largest customers, which we believe differentiates us from many of our competitors.

Our management team has extensive experience in the retail and distribution business, including the non-foods, commodity, natural, organic and specialty product industries. On average, each of our executive officers has over twenty-eight years of experience in the retail, consumer product goods or food distribution industry. Furthermore, a significant portion of our management-level employees’ compensation is equity based or performance based, and, therefore management is incentivized to generate continued strong operating results in the future.

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Our management team has extensive experience in the retail and distribution business, including the non-foods, commodity, natural, organic and specialty product industries. On average, each of our executive officers has over twenty-eight years of experience in the retail, consumer product goods or food distribution industry. Furthermore, a significant portion of our management-level employees’ compensation is equity based or performance based, and, therefore management is incentivized to generate continued strong operating results in the future.

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We will strive to continue to maintain our focus on realizing efficiencies and economies of scale in purchasing, warehousing, transportation and general and administrative functions, which, combined with transportation expense savings and incremental fixed cost leverage, should lead to continued improvements in our operating performance.

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We will strive to continue to maintain our focus on realizing efficiencies and economies of scale in purchasing, warehousing, transportation and general and administrative functions, which, combined with transportation expense savings and incremental fixed cost leverage, should lead to continued improvements in our operating performance.

We also offer our customers a selection of inventory management, merchandising, marketing, promotional and event management services designed to increase sales and enhance customer satisfaction. These marketing services, which primarily are utilized by customers in our independently owned natural products retailers’ channel and many of which are co-sponsored with suppliers, include monthly and thematic circular programs, in-store signage and assistance in product display.

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We also offer our customers a selection of inventory management, merchandising, marketing, promotional and event management services designed to increase sales and enhance customer satisfaction. These marketing services, which primarily are utilized by customers in our independently owned natural products retailers’ channel and many of which are co-sponsored with suppliers, include monthly and thematic circular programs, in-store signage and assistance in product display.