| For Immediate Release: August 31, 1998 | Contact: | Rob Michalak 802-651-9600 x 7700 Lee Holden 802-651-9600 x7701 |
| For Immediate Release: August 31, 1998 | Contact: | Rob Michalak 802-651-9600 x 7700 Lee Holden 802-651-9600 x7701 |
“This distribution arrangement puts Ben & Jerry’s in a better position to control our product sales and implement more efficient domestic distribution,” said Perry D. Odak, Ben & Jerry’s President and CEO. “Ben & Jerry’s sells it and the distributors deliver it.”
Prior to this agreement, Dreyer’s Grand Ice Cream distributed significantly more than a majority of sales of Ben & Jerry’s products and participated in a large percentage of the retail sales calls. Under the new arrangement, Ben & Jerry’s will be responsible for a greater percentage of direct retail selling efforts with distribution being handled by a larger number of distributors. Under the distribution network redesign, Haagen-Dazs will distribute Ben & Jerry’s products to specified territories; the balance of domestic deliveries will be handled by other independent distributors; a number of whom already have distribution agreements with Ben & Jerry’s for specified territories. In other territories Ben & Jerry’s intends, during the termination notice period under the previous Dreyer’s agreement, to conclude distribution arrangements with additional independent distributors. Now, no single distributor will have over 40 percent of Ben & Jerry’s distribution.
“This distribution redesign is a more appropriate strategic balance for Ben & Jerry’s,” Odak said.
The termination of the Dreyer’s distribution agreement may not be effective for a number of months. Dreyer’s distribution exclusivity, which exists in several markets, will be retained for a shorter period of time. As a result, Haagen-Dazs will be commencing distribution for Ben & Jerry’s on a timetable agreed between them.
“We would prefer,” Odak continued, “to have Dreyer’s continue to distribute some portion of Ben & Jerry’s sales under a new agreement with Dreyer’s. Although Dreyer’s has expressed an interest, at this time a new agreement has not been worked out.”
The dynamics of the frozen dessert business have changed considerably over the past decade. The agreement with Haagen-Dazs also serves a growing retail customer demand for frozen dessert suppliers to partner in direct store delivery (DSD) to streamline the delivery process.
“This agreement creates many service benefits for Ben & Jerry’s valued customers,” said Ben & Jerry’s Sales and Distribution Director Chuck Green. “It does a couple of other things too. It creates more opportunities for our existing customers to receive better service and for us to reach a greater number of outlets with Ben & Jerry’s products.”
“This is strictly a distribution agreement with Haagen-Dazs,” Odak said. “This type of arrangement is not unusual for consumer products. The food and beverage industries have worked under similar types of same truck, multiple brand deliveries for quite some time.”
Ben & Jerry’s produces super premium ice cream, ice cream novelties, low-fat ice cream, low-fat and non-fat frozen yogurt, and sorbet using Vermont dairy products, Vermont spring water, and high quality natural ingredients. Ben & Jerry’s products are distributed nationwide and in selected foreign countries in supermarkets, grocery stores, convenience stores, scoop shops, restaurants and other venues.
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Ben & Jerry’s Homemade, Inc.
30 Community Drive
South Burlington, VT 05403-6828
Phone: (802) 651-9600 FAX: (802) 651-9646
http://www.benjerry.com