REX honor is latest for Amfac Drug, wholesaler of the year

Drug Store News, Nov 19, 1990

REX honor is latest for Amfac Drug, wholesaler of the year

FOLSOM, Calif. - For Amfac Drug, recognition has come in bunches this year. The winner of the Drug Store News REX Award for Drug Wholesaler of the Year earned a similar honor from Eckerd Drug earlier in 1990.

Amfac, the nation's seventh highest volume wholesaler, expects this year's $1.3 billion in sales to reach $1.6 billion for the fiscal year ending June 30, 1991. As a leveraged buyout company the past two years, Amfac has exceeded all its internal financial goals, president Mel Whitmire said.

An earn-out clause in the LBO agreement stipulated that management would get an extra 3.5 percent interest in Amfac for each year the wholesaler exceeds earnings. This has happened the past two years; 60 shareholders who are part of this agreement now own 16 2/3 percent of Amfac, up from 10 percent, said Whitmire.

To get where it is today, Amfac concentrated on increasing all segments of its business: hospitals, nursing homes, chains and independent drug stores.

Its overall growth in the past year exceeded 35 percent, and, while part of that came from its acquisition of Northwestern Drug over a year ago, the rest came from increased sales to existing and new customers.

Whitmire reports "phenomenal growth" in the company's fastest growing segments. These include hospitals, consulting pharmacists, nursing homes and chain drug stores.

Last year, Amfac invested heavily in technology, creating specialized software programs that make it easier for customers to manage their business. Also in the past year, Amfac has moved some of its smaller facilities into larger, upgraded headquarters. The product mix was expanded wherever management felt it was appropriate.

Amfac still has some facilities averaging 15,000 to 18,000 square feet, stocking primarily pharmaceuticals. Its largest facility is Northwestern, with a product mix between 65 percent and 70 percent pharmaceuticals.

Another strategic goal is to service some markets from what Whitmire describes as a master hub facility. This facility may service and support possibly as many as four or five smaller satellite facilities.

"The satellites could handle daily pharmaceutical deliveries to hospitals and pharmacists and be very responsive to our customers' needs, while the hub or master facility could do weekly or twice week deliveries on H&BAs and general merchandise that don't require daily shipments," said Whitmire.

According to Whitmire, it is possible for Amfac could get such a center as early as next year if the right acquisition can be made. "Where it fits and where it makes sense, we're continuing to pursue acquisitions."

PHOTO : DRUG WHOLESALER OF THE YEAR: Amfac Health Care's Mel Whitmire (right) receives award from Mike Visnich of Harris Wholesale.

PHOTO : LARGE DRUG CHAIN OF THE YEAR: Phar Mor's Mickey Monus (right) receives award from Bruce Buckley, editor-in-chief of Drug Store News.

PHOTO : CHAIN DESIGN/FORMAT OF THE YEAR: Pay Less Drug Stores NW's Jerry Kuske (right) receives award from Bill Price of Eckerd Drug.

PHOTO : SMALL DRUG CHAIN OF THE YEAR: Kerr Drug Stores' Banks Kerr receives award from Jill Manee.

PHOTO : DRUG CHAIN MARKETER OF THE YEAR: Phar-Mor's Joe Pingue (right) receives award from Jay Forbes, publisher of Drug Store News.

PHOTO : MARKET MAKER OF THE YEAR: Slim Fast Foods' Charle Bechtel (right) receives award from Ted Gladson of Gladson & Associates.

PHOTO : BRANDED PHARMACEUTICAL MARKET MAKER AWARD: James Blake (right) of Merck Sharp & Dohme (Mevacor) receives award from Gordon Barker of Pay Less Drug Stores NW.

PHOTO : OTC MARKET MAKER AWARD: Jim Rinehart (right) of Chattem Consumer Products (Flex-all) receives award from Reed Rosling of Bergen Brunswig.

PHOTO : GENERIC PHARMACEUTICAL MARKET MAKER AWARD: Barr Labs' Ed Cohen (right) receives award from Joe Polastri of McKesson.

PHOTO : GENERAL MERCHANDISE MARKET MAKER AWARD: Bruce Travis (right) of Duracell (Coppertop Battery Tester) receives award from Bill Edwards of A.L. Price.

PHOTO : COSMETICS MARKET MAKER AWARD: Linda Kurtzman and Michael Carter (right) of Max Factor (New Definition Perfecting Makeup) receive award from Jerry Kuske of Pay Less Drug Stores NW.

PHOTO : FRAGRANCE MARKET MAKER AWARD: Donald Pettit (right) of Noxell Corp. receives award from Ron Peterson of Eckerd for Navy.

PHOTO : TOILETRIES MARKET MAKER AWARD CO-WINNER: Scott Roberts (right) of The Gillette Co. (Sensor) receives award from John Jennings of Brooks.

PHOTO : TOILETRIES MARKET MAKER AWARD CO-WINNER: George Klarsfeld (right) of L'Oreal (Plenitude) receives award from Arthur Schwalb of New Product Reports.

PHOTO : COSMETIC/FRAGRANCE ADVERTISER OF THE YEAR: Coty's Jack Kingsbury accepts award from Jill Manee, associate publisher of Drug Store News.

PHOTO : OTC/TOILETRIES ADVERTISER OF THE YEAR: Pope & Talbot's Tim Wagner receives award from Jill Manee.

PHOTO : ADVERTISER OF THE YEAR: Eveready's Gary Baker receives award from Jill Manee.

PHOTO : GREENSCAPE AWARD: The Clorox Co.'s Todd Slingsby, right, receives award from Al Heller, executive editor of Drug Store News.