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B&G Foods Inc. Message Board

  • petrdeep petrdeep Oct 26, 2011 5:18 AM Flag

    My only concern on the call was...

    Sales to walmart saw double digit increases while sales to grocery stores were flat. Walmart opens a new supercenter almost every day and they get their suppliers addicted to the volume increases. At the same time the annualy demand a lower price on the product. Once Walmart becomes your largest distributer they own you. They can enslave their suppliers. I pray our managment doesn't fall into this trap.

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    • To understand what's going on with WalMart, you have to go back several quarters. Awhile back, WalMart implemented a (failed) strategy to dramatically reduce the number of SKUs on their shelves to lower their operating costs. B&G took a hit when that happened, as several of their products were removed from shelves.

      Later on, Walmart realized that the strategy was cannibalizing overall sales so they announced they would reverse course. This double-digit sales growth to WalMart is probably just a short-term blip to re-fill inventory of some of the products they've decided to put back on the shelves.

    • Except for the fact they have been selling to Walmart for decades.

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