Supervalu’s Q3 shows results of acquisitions on wholesale business
Grocery retailer and wholesaler Supervalu has shared the results from its fiscal 2018 third-quarter, which included a boon to its wholesale business in the form of its Unified Grocers acquisition, even as retail sales declined. The Minneapolis-based company’s total continuing operations saw net sales of $3.94 billion — up 31% from $3 billion in the same period last year.
Supervalu’s retail division netted $1.02 billion in sales, down 4.1% from last year’s $1.06 billion, which the company attributed to a 3.5% dip in same-store sales and store closings, offset by new and acquired store sales. The company’s retail operating loss was $6 million for the quarter, a number that included $3 million in costs related to store closures. Supervalu’s third-quarter operating loss was well below the loss it posted in the same period last year, when it reported $14 million.
The impact of retail losses on Supervalu’s bottom line was buoyed somewhat by its wholesale division’s performance. The wholesale business posted $2.89 billion in net sales, an increase of 52% over the prior period, which the company said was driven by the Unified Grocers acquisition, as well as new customer sales and increased sales to existing customers. Operating earnings were down slightly from last year, coming in at $48 million after being adjusted for $2 million of merger and integration costs. In the prior third quarter, Supervalu’s wholesale division brought in $52 million in operating earnings.
“With the influx of significant new business in certain distribution centers, we experienced a larger-than-anticipated increase in expenses, but we're encouraged by the work we are doing to address those costs and believe they are manageable going forward,” Supervalu president and CEO Mark Gross said. “We remain committed to investing in our wholesale business to drive future growth.”
On the corporate side, Supervalu saw fees earned of $33 billion from services agreements, and its new corporate operating loss was $1 million — which included $3 million of merger and integration cost. This is compared with net corporate operating earnings of $4 million last year.
With the Unified Grocers acquisition completed in Q3, the company set its sights on its Associated Grocers acquisition, closing it early in its fourth quarter.
“We're pleased to have completed our acquisition of AG Florida early in the fourth quarter,” Gross said. “The work done in the third quarter concluded with this deal which, combined with the acquisition of Unified Grocers earlier this fiscal year, demonstrates our commitment to the strategic growth of our Wholesale business. Furthermore, we're extremely pleased with the integration work at Unified and the progress made in that market.”
RLA Collective a finalist for 2018 Innovation SABRE Awards three times over
RLA Collective, an OTC/healthcare-focused integrated marketing agency, made the 2018 Innovation SABRE Awards shortlist for three programs in digital/marketing: “Best in Digital Marketing/Advertising” for an integrated media campaign with Vetoquinol USA; “Best Use of Video Networks” utilizing Facebook LIVE to showcase pet care advice from Tomlyn's resident veterinarians; and “Best in Brand Narratives” for a unique video testimonial influencer campaign, “VSL#3: The Journey Back," (featured above) the company announced last week.
Hosted by the Holmes Report, the 2018 Innovation SABRE Awards recognize marketing campaigns that demonstrate the highest levels of strategic planning, creativity and business results that explore the collision of content, media, technology and more.
[quote-from-article] “For RLA Collective, being a finalist in these digital categories – especially among some of the biggest industry players and brands — acknowledges our strategy, creativity and success in utilizing the latest digital platforms for efficient brand marketing,” stated Alyson O’Mahoney, president of the Pleasantville, N.Y.-based marketing firm.
With a record number of entries and competition this year, the Innovation SABRE Awards are judged by senior executives in the communications and marketing industries. “We are thrilled to be recognized as finalists among some of the most innovative large and small players, including JetBlue, Blue Cross, GE and Procter & Gamble,” commented Robin Russo, CEO RLA Collective. “As OTC health and wellness specialists for humans and pets, we not only understand how to bring about success in a highly regulated industry, we set very high standards for ourselves to develop digital strategies that integrate with a brand’s overarching sales and marketing objectives.”
The RLA team was especially honored to be a finalist in the overarching “Best in Digital Marketing/Advertising” campaign category for Vetoquinol’s Zylkene pet health supplement brand. “We took a specific sales objective and applied integrated digital tactics – from AI-driven digital advertising, to influencer/content partnerships to reach that objective,” explained O’Mahoney, who has been developing RLA’s expertise in digital marketing innovation.
“We took home a SABRE Award last year for the Colief Infant Digestive Aid digital campaign, ‘Answering a Mom’s Cry for Help,’ and are incredibly proud to receive three finalist nominations this year,” adds Russo.
The SABRE Award winners will be announced on Feb. 13, 2018 at the InterContinental Hotel in New York.
Petrics tracks pet activity, health and nutrition in smart bed
Petrics, a pet health technology company, is looking to make tracking weight, activity levels and rest periods a whole lot easier for pet owners. By launching the Smart Pet Bed, Activity Tracker, pet Health and Nutrition App, the Las Vegas-based company is aiming to help those four-legged family members achieve optimal weight ranges.
Each bed will include a built-in scale, along with thermostatic heating and cooling. Users will be able to automatically or manually adjust the temperature until it’s ideal for each pet based on their breed, environment and geographic location.
"Our mission is to empower every pet owner with access to nutritional and behavioral information, so they can provide the best possible care and comfort for their pets and help them live longer, healthier lives," Ed Hall, CEO at Petrics, said. "Our pet health ecosystem helps pet parents react quickly and effectively to their pet's needs, and ultimately, saves lives through early detection and intervention."
The Smart Pet Bed and Activity Tracker communicate with the Petrics Health and Nutrition App, creating a health ecosystem that grants pet parents the ability to monitor and track nutrition data, along with obtaining food and diet recommendations, the company said.
Additional product information can be found on Petrics website.