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Our mission
Service our customers by providing products and services of superior quality, sold at competitive prices while achieving profitable growth, and providing to our employees, suppliers and shareholders the opportunity to also achieve their own objectives.
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Financial Informations / Media Center
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Market and Customers: Affiliated-Wholesalers
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The Boucherville Division's contribution to the success of its customers is evidenced by the fact that
20 Affiliated-Wholesalers, representing approximately 80% of the Boucherville Division's sales have been
with Colabor LP for more than
15 years. Furthermore, as part of the Initial Public Offering in 2005, all Affiliated-Wholesalers have agreed to
renew their agreements with the Boucherville Division for a period of ten years and two additional renewal
periods of five years each. See "Long-Term Relationship with Affiliated-Wholesalers".
Affiliated-Wholesalers typically service clients in either the retail or foodservice segments, although some
may cater to both clienteles.
"Point d'aide", "Visez Juste!", "Dépanneur Ultra", "Votre dépanneur Sermax", "Groupe Affilié",
"Marché Éclair Plus" and "Marché Éclair" trade-marks (Banners) are owned by Colabor LP which licenses them to
more than 280 independently-owned stores. This mutually beneficial format allows convenience stores
and small to medium-size grocery stores to take advantage of the benefits arising from competitive pricing,
private label products, advertising and merchandising on a scale usually available only to large chains, as
well as certain other retail support services provided by Colabor LP such as store installation, price cards,
inventory control forms, catalogue of supplies, seasonal specials and promotional activities. Those
bannered stores fulfill the majority of their purchasing requirements for products distributed by
Affiliated-Wholesalers with the Affiliated-Wholesalers.
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Other Wholesale Distributors
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In addition to Affiliated-Wholesalers, the Boucherville Division services other wholesale distributors,
integrated retail chains and food exporters including privileged members which, in accordance with
Colabor LP's commercial policies, are treated like Affiliated-Wholesalers and benefit from the same rights.
These customers benefit from volume rebates on their purchases from Colabor LP and, respectively,
accounted for approximately 13 % and 9,11% of the Boucherville Division's sales for the years ended
December 31, 2007 and December 31, 2008. In accordance with general industry practice, no long-term
agreements are entered into with these customers.
Colabor LP purchases products for resale to its Affiliated-Wholesalers, Cara (including its franchisees)
independent wholesale distributors and other customers from approximately 600 manufacturers and
suppliers mostly located in Canada. No single supplier accounts for more than 10% of Colabor LP's
purchases. Brand name products are purchased directly from the manufacturer or supplier, through the
manufacturer's or supplier's representatives or through food brokers. "Multi Choice", "Menu" and
"Mouska" label products are purchased from producers, manufacturers or packers who are licensed by Colabor LP.
Colabor LP purchases products in large volume and resells them in the smaller quantities as
required by its Affiliated-Wholesalers, independent wholesalers and other customers. Order size and
frequency of purchases are determined by Colabor LP's buyers based upon historical sales experience and
sales projections.
Colabor LP continuously maintains and develops relationships with its suppliers, some of which have been
ongoing for more than 45 years. Among other things, Colabor LP assists suppliers to meet the needs of
end-users by providing them with statistics on market conditions.
Substantially all categories of products distributed by Colabor LP are available from a variety of
manufacturers and suppliers and Colabor LP is not dependent on any single source of supply for any
specific category. However, market conditions or client requirements dictate that certain nationally
prominent brands, available from single suppliers, be available for distribution.
To increase its purchasing power, Colabor LP is also a shareholder of a Canada-wide buying group called
ITWAL Ltd. ("ITWAL"), formed in 1966 by independent wholesale distributors located in Ontario.
Historically, ITWAL was mostly involved in the distribution of confectionery products. However, as new
members have joined the group, it has expanded its product offering. In addition to Colabor LP, ITWAL
includes some 65 wholesale distributors covering the Province of Ontario and the western part of Canada.
ITWAL is also a member of another buying group operating in the foodservice segment called National
Brand Marketing Corporation. Following the Summit Acquisition, Colabor LP became a member of the
Associated Food Distributors ("AFD") buying group for the foodservice industry. AFD and ITWAL
combine their purchasing power under National Brand Marketing Company.
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Intellectual Property Rights
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Colabor LP is not dependent upon any single trademark or trade name, although some trademarks on
private label products and store banner names are important to its business. As a result, Colabor LP
recognizes the importance of its corporate and brand trademarks and the need to protect and enhance their
value. It is a practice of Colabor LP to register or otherwise protect its trademarks. Colabor LP has also
developed non-public proprietary information regarding its business and uses internal procedures and
safeguards to protect the confidentiality of such information as well as the information provided by its
Affiliated-Wholesalers, other wholesale distributors and suppliers. Colabor Investments Inc. and GIC have
been granted a limited license to use the name "Colabor" in their respective corporate names.
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