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Friday December 13 3:12 PM EDT
Alanco's Fry Guy Division Signs Pact with Major Distributor
SCOTTSDALE, Ariz., Dec. 13 /PRNewswire/ -- In what company officials called "the opening of a major new market," Fry Guy Inc., a division of Alanco Environmental Resources Corp , announced today a five- year agreement with Salubre Foods International, Inc., to provide Fry Guy's trademarked, private label SGT. FRY Integrated Food Marketing Program to the huge independent market.
The contract calls for Salubre, a national distributor of complete, branded food programs including equipment and products to colleges, hospitals, business and industry, supermarkets and convenience stores, to supply as many as 1,000 Fry Guy deep fryers per month to independent retail food outlets. Salubre will provide distribution of Fry Guy's new SGT. FRY label food products to the outlets, and will initially enter into as many as 15 distribution agreements with its network of institutional and independent distributors on or before December 20, 1996.
Norman E. Meyer, President and Chief Executive Officer of Alanco and Fry Guy, Inc., said, "This agreement is the next step in our multi-front marketing strategy at the domestic level for Fry Guy. We have successfully completed the implementation of the SGT. FRY Integrated Food Marketing Program in more than 1,100 Wal-Mart stores nationwide. Salubre's national presence in the huge independent retail market, which includes a host of food outlets in hotels, bars and diners, opens up a second front with vast potential."
Under the terms of the agreement, Fry Guy will supply its self- ventilating, counter top deep frying units and SGT. FRY food products and Salubre will contract for and service the distributors of the machines and products. The companies will work together in training Salubre's multitude of independent distributors. Salubre intends to roll the Fry Guy program out to more than 10,000 outlets over the life of the agreement.
Craig Whitt, President of Salubre, said, "In less than a year, the SGT. FRY Integrated Food Marketing Program has been an overwhelming success in Wal- Mart stores. Salubre's national network of specialty equipment and food distributors are looking forward to the opportunity to provide the high quality Fry Guy program and SGT. FRY label foods to their clients, and striving to attain that same success rate in a far reaching variety of independent retail food outlets. We intend to start out by taking 200 machines in January, 250 in February, then quickly ramping up to 500 machines and more per month thereafter."
The distribution agreement stipulates that retail outlets are required to purchase a minimum average number of SGT. FRY food portions per day during the opening three-month period. That minimum average triples after the start-up period. As in the Wal-Mart agreement, Fry Guy participates in the continuing food revenue stream in the SGT. FRY program on a per case rate.
"We actively sought an aggressive partner of demonstrated effectiveness for Fry Guy," said Meyer. "Salubre met our standards and we are pleased to have them join us in expanding Fry Guy's innovative program in the non- traditional convenience food market."
Cincinnati, Ohio-based Salubre Foods International, Inc., operates in the United States and Mexico, providing custom nationwide distribution services to an established network of specialty distributors. Salubre customers include Marriott, Fine Host and convenience store chains.
Fry Guy supplies a patented, self-ventilating fryer in a convenient counter top unit that requires little shelf space and operates on 110-volt power. Under the private label SGT. FRY, Fry Guy provides end users the finest quality finger food products in conjunction with prominent food suppliers as its strategic partners. These include Tyson Foods, Anchor Foods, and the Lamb Weston division of Beatrice Foods, with cooking oil provided by Cargill.
Alanco's Fry Guy division announced an agreement on December 12 to export its SGT. FRY food line to China. SOURCE Alanco Environmental Resources Corporation |
