- Enhances competitive advantage through greater selection of nationally branded, dry goods and grocery products at materially lower wholesale costs
- Increased, post-COVID grocery demand enabled minimum order size required for approval by UNFI
LOS ANGELES, CA, Oct. 07, 2020 (GLOBE NEWSWIRE) — via NewMediaWire — Pacific Ventures Group, Inc. (OTC: PACV) (the “Company”), a Southwest focused, specialty food and beverage distributor and retailer, today announced a new supply contract between its wholly-owned subsidiary, San Diego Farmers Outlet (“SDFO”) and Providence, RI based, national food distributor UNFI.
The agreement provides SDFO new access to a broad range of nationally branded products that can better meet the specific needs of its unique customer demographic and increase SDFO sales.
The Company also expects SDFO margins on dry goods and grocery items to materially improve due to the lower costs allowed by access to top tier distribution and national scale sourcing by UNFI.
Because SDFO minimum order size in years prior was not sufficient for account approval by a tier 1 distributor, it had to rely on regional distributors with limited selection of national brands, at higher prices.
With the consolidation of these items into a national, tier 1 supplier, SDFO’s customers gain a vastly improved product selection at lower prices, a critical competitive enhancement that improves new account growth, customer retention, and average revenue per customer.
Its regional supply relationships will be reoriented toward specialty brands more effectively supplied by such suppliers.
The UNFI relationship allows optimization of SDFO’s product mix to better respond to the unique characteristics of its regional customers and changing consumer behavior driven by COVID.
“Broader, more nimble product choice removes friction in winning new accounts and expanding existing ones,” commented Shannon Masjedi, Pacific Ventures CEO. “The ability to quickly and opportunistically reset product mix for dynamic customer demand, at the best prices, is an important competitive advantage.”
About Pacific Ventures Group
Pacific Ventures Group, Inc. (OTCMKTS: PACV) is a Southwest focused, customer-centric, food distribution company with three core assets: Seaport Meats, a USDA certified meat processing facility and distributor of quality meat, fish, and poultry through wholesale and direct-to-consumer channels; San Diego Farmers Outlet selling top quality produce to a growing number of Southern California businesses and retail customer since 1983; and Snöbar, alcohol-infused frozen desserts. $15 million in revenue in the first half of 2020, Pacific Ventures' organic growth strategy emphasizes continual operational and sales improvements along with an active M&A strategy to grow through synergistic acquisitions. www.pacvgroup.com
Safe Harbor Statement
Forward-Looking Statement: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include but are not limited to, the inability of the company to obtain financing sufficient to maintain its operations and execute its acquisition strategy; the inherent uncertainties associated with smaller reporting companies; and other risks detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.
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