Centennial Specialty Foods Corporation Sees Opportunity With Resolution of Southern California Grocery Strike
March 03 2004 - 9:12AM
PR Newswire (US)
Centennial Specialty Foods Corporation Sees Opportunity With
Resolution of Southern California Grocery Strike DENVER, March 3
/PRNewswire-FirstCall/ -- Centennial Specialty Foods Corporation
(Nasdaq: CHLE; Boston: CSJ) has been advised that the grocery
strike that has been on-going for over four months in Southern
California has been resolved, re-creating new openings for growth
in sales of Centennial's products in this region. A settlement was
agreed upon earlier this week and workers are expected to go back
to work over the next couple weeks. The grocers involved, including
Albertsons, Ralph's, and Vons, are expected to resume normal
business operations in the immediate future. The grocery strike
affected many food companies in the country,including Centennial,
as certain retail grocers decided to delay new products approvals,
shipments, and new store sets in the stores involved in the strike.
Although the strike delayed Centennial's plan to expand its
products into Southern California and surrounding new regions, the
company is now in the process of scheduling appointments with
grocery retailers in Southern California to move forward in
executing its business plan. Most grocery retailers are expected to
set appointments for new product introductions over the next 30 to
45 days, after they have had a chance to regroup following the
prolonged strike. Getting approved new products onto the grocery
shelves normally takes another 30 to 60 days. Centennial believes
that the groundworkit performed for its market rollout while the
strike was in process will help move appointments and resulting new
product approvals forward. Jeff Nieder, Chief Executive Officer of
Centennial, expressed his optimism about the resolution of the work
interruption, stating, "The conclusion of the Southern California
grocery strike is expected to have a positive effect on the grocery
industry in general, especially in California and surrounding
states, as regional grocery managers can now focus on theirnormal
operations." One of the challenges that the grocery retailers will
face is re-attracting customers to their stores following the long
strike. "We believe that the grocery stores will be looking for new
products to bring a point of difference for their returning
customers, opening doors for companies like Centennial to expand
their product distribution," Mr. Nieder added. Centennial also
believes that shipments of its premium Stokes Green Chile Sauces to
327 Vons stores in Southern Californiathat were approved before the
strike started will take place sometime in the next month.
Centennial Specialty Foods Corporation is a manufacturer and
distributor of ethnic Southwestern food products. Its products are
sold under the Stokes and Ellis labels, two well-known Southwestern
brands that date back almost 100 years. Principal channels of
distribution for Centennial's products are grocery retailers,
superstores and club stores in Colorado and, to a lesser extent,
several major metropolitan markets in adjoining states. More
information about Centennial can be found on its website at
http://www.centennialspecialtyfoods.com/. Note Regarding Forward
Looking Statements: Certain matters discussed in this press release
could contain forward- looking information that involves risks and
uncertainties that could cause actual results to differ materially
from current trends or expected results. We identify forward
looking statements through our use of words such as "expect,"
"believe," "project,""anticipate," "intends" and similar
expressions. These risks that may affect our ability to achieve
forward- looking statements are discussed in our final prospectus
in the section entitled "Risk Factors" and other documents that are
on file with theSecurities and Exchange Commission. Without
limiting the foregoing, statements concerning the retail grocers'
future approval of Centennial's products for distribution in any
particular region or for specific stores, and the time period
required to get Centennial's products on store shelves, are forward
looking statements. There is no assurance that Centennial's
products will be receiving retail grocers' approvals for
distribution into new regions or stores or that, once approved,
Centennial's products will be stocked on store shelves on a timely
basis, either of which may impact Centennial's future operating
results. Stokes and Ellis are registered trademarks of Centennial
Specialty Foods Corporation. DATASOURCE: Centennial Specialty Foods
Corporation CONTACT: Stephanie Hinkle of Preserve Communications,
+1-720-488-5409, for Centennial Specialty Foods Corporation; or
Jeffrey Nieder of Centennial Specialty Foods Corporation,
+1-303-414-4613 Web site: http://www.centennialspecialtyfoods.com/
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