To: RFH who wrote (662 ) 6/28/1999 8:18:00 PM From: out_of_the_loop Read Replies (1) | Respond to of 5582
Good news on GUMM, posted on Yahoo thread by a "very reputable" poster.messages.yahoo.com It is not news per se, but it discusses the distribution of Zicam. Great post, very informative, copied verbatim below. *** Zicam and retailers by: makemilns (38/M) 5584 of 5585 <Is there any confirmation that K Mart, Walmart, Target, Rite Aid, and Walgreens are even interested?> Well, actually there is. Please read on... I contacted Mr. Brown Russell at GumTech to see what he could tell me about which retailers will stock Zicam for the upcoming cold season. Based on indications from buyers at retail chains, Mr. Russell expects Zicam to be on the shelf at NEARLY ALL drug stores, mass retailers, and grocery store chains for the upcoming cold season. The leading mass retailers include Walmart, Kmart, Target, Fred-Meyer, and Sam's Club. The top drug store chains include Walgreens, CVS, Rite Aid, Eckerd, American Stores, and Longs. The leading grocery stores include Kroger, Albertsons, Safeway, Winn Dixie, A&P, Publix, and Food Lion. Together, these stores constitute about 80 percent of the total dollar sales volume of all the stores listed in the three categories. Also based on indications from buyers, management believes that Zicam will be on the shelf at 65 to 70 percent of the remaining 20 percent of stores. Included in this list are drug store chains and mass retail chains that have less than 200 stores and grocery store chains that have less than 300 stores. Convenience stores and “mom & pop” stores are not included, but they can order Zicam from McKesson, Cardinal Health, Bergen Brunswig, or any other distributor that supplies Zicam. GumTech already has vendor numbers with most major retailers, and the fact that buyers have indicated that they will stock Zicam is part of the process before they actually place an initial order. Each time the company adds a new retailer to the growing list of those who will stock Zicam, it becomes easier to sign on a new chain. As an analogy, how would consumers feel if a drug store didn't carry Sudafed, Robitussin, or any other major cough and cold product? I believe that Zicam will be a well known, major cough and cold product in just a few months. The competition with other retailers alone makes it easier for Gel Tech to sell Zicam to retailers. Of course sell through to consumers is very important and it is important for the company to have wide distribution of Zicam before they begin the advertising campaign so consumers can find it easily. All indications are that the company will have Zicam on the shelf at NEARLY ALL retailers who make up 80 percent of the total dollar volume of all stores combined by this cold season. This is huge news and should not be taken lightly by investors! According to Mr. Russell, retailers will begin ordering Zicam in July and August for the cold season that begins in September and October. Some retailers have already started ordering Zicam. For example, American Stores placed their first purchase order within the last few days. The fact that all the major retailers have indicated that they will stock Zicam for the coming cold season is further testament to the excellent management at GumTech and Gel Tech.