2018 Wholesaler Innovator of the Year

The

Griffin Report

of the

Northeast

The Next Generation of Innovators

2018 Wholesaler Innovator of the Year

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2018 Wholesaler Innovator of the Year

March 2018

J. Polep Family Message Continues to Be Dominant Theme for Customers, Employees and Vendors

by Mike Berger, editor/Northeast Throughout every conversation with each team member of J. Polep Distribution Services, the word “family” always comes up.

Jeff Polep, company chairman, says he wants every staff member, customer and vendor to be part of the J. Polep family. And he means it.

That has been the message since he began managing the fifth-generation family business several decades ago. That is why Jeff has rejected many offers to buy his company.

He wanted the next generation of family to lead, and that day has come.

In today’s world of acquisition and mergers, J. Polep still remains the largest independent but still family-owned distributor in New England.

Jeff’s leadership style has always been to foster innovative ideas and collaboration among staff members.

He is not actually retiring but will pass much of the dayto-day operations to his children: Eric, new company president; Rachael Polep Kramer, president of Rachael’s Food Corp.; and Adam Kramer, VP of food service and purchasing.

“I won’t be retiring, but I feel it is the right time to put more responsibilities on the kids. I am comfortable with them and the knowledge they have picked up over the years,” he said.

Rachael added that every family member grew up and worked in the business. But a job is not guaranteed.

“You have to earn your position,” she said.

Today, J. Polep is a broadline distributor, branching into all food categories with 15,000 SKUs, 5,000 customers and more than 800 full- and part-time employees.

In February, the company broke ground on an exciting new venture: an $11 million, 37,500-s.f. expansion to the warehouse at its Chicopee, Massachusetts, headquarters.

The expansion will replace the old 12,000-s.f. freezer cooler with a new 12-bay loading dock and freezer-cooler area, allowing for more product expansion. The overall J. Polep building complex on Meadow Street is nearly 300,000 s.f.

A long history

The J. Polep family has been in the distribution business for 120 years.

The original company, Polep Tobacco Co., was founded

by Charles Polep in 1898 in Salem, Massachusetts. Over the past several years, J. Polep has acquired companies, expanded product lines and added programs and value-added services to better service the convenience store retailer.

J. Polep has grown to supply more than just the convenience store channel. The company keeps adding services and programs that make it a one-stop, full-service distrib-

utor servicing also serving supermarkets, corporate dining accounts and colleges and universities.

J. Polep also has grown to become a manufacturer with a full-fledged commissary under the Rachael’s Food Corp. umbrella.

Dave Taylor, VP of new business development and a sales veteran of more than 25 years, summed it up best when he said, “I think what is different about J. Polep is the mindset. We are willing to try something Lori, Eric and Jeff new. It may not always be successful, but we keep going forward. We definitely hear, ‘Wow, I can’t believe what you have, the wide variety of services; a lot of your competitors don’t have these types of programs.’ These programs have value to the retailer.”

J. Polep continues to keep up with current trends more than any other distributor. More than 30 years ago, they realized they couldn’t rely on cigarettes, so Jeff and now-retired Kenny Morse, longtime EVP, looked into food service.

With the advent of the “better-for-you” segment, J. Polep advanced into the college arena, added specialty, organic and natural foods and now is working with hospitals and large food service companies. The specialty food division has expanded, which led to the growth of ethnic foods, including Hispanic and Asian products.

The common thread throughout all this expansion is providing the best, freshest products to its customers, topped off with the best customer service.

Jeff maintains that no matter how much J. Polep continues to grow, the name of the game is treating people well.

“We have and continue to treat our staff, our vendors and our customers like family. I still have an open-door policy.

Have an idea? I would like to talk to you about it,” he said.

Jeff attributes the success of his company to product diversification, a dedicated working staff, a loyal customer base and a commitment to superior customer service.

He sees his family legacy as being quality products and services and new innovative ideas for his customers, but above all, loyalty and honest business transactions. He credits his staff for continuing to bring new and fresh ideas to the table every day and for all of his employees who share his principles of honesty, fairness and integrity.

In an interview with family members, each offered a perspective on what makes the company special. All of them agreed that each team member is valued and their ideas are welcome. All also agreed that any customer could call them nights or weekends with a problem or a suggestion.

Dave Boisselle, VP of operations, said in a company video, “It is the empowerment of our people to be better and work as a team.”

Rachael said the same open-door policy will continue.

“There is always time for our employees. We are there

Polep, Rachael Polep Kramer & Adam Kramer. for them.”

Adam said that even as J. Polep continues to grow, its mission is to be a service-oriented distributor, always— helping customers grow their business.

“We are always forward-thinking. We are never afraid to try new things. We want what is best for our customers, and each customer has different needs that we must fulfill.”

Lori Polep, VP and CIO, agreed with Jeff: “Diversification has been our salvation; tobacco is still important, but we are not dependent on it.”

She added the company has the flexibility to change. “We give up when it is not working.”

Lori said what has helped the company over the years is recognizing talent and creating new opportunities for all.

“We have a great deal of talent here. The next generation is our business. I think we have done a good job planning ahead for when people retire,” she said.

Through Lori’s efforts and others, the company has and continues to invest heavily in technology, and that continues today internally and for its customers.

Eric noted, “We are always trying to increase the ease for our customers. We are trying to make our customers’ lives easier.”

Garber Bros. assets purchase

Jeff also offered comment on a major new development that shaped the future of J. Polep in 2017: the acquisition of Garber Bros.’ assets.

Jeff called Garber Bros. a chief competitor, but the two families always had a professional respect for each other.

Nearly one year later, Jeff said the purchase has been “huge for us. We picked up a lot of business and added many good people to our team.”

Eric added, “The Garber people are a great fit for us, and our people made it a smooth transition for them.”

Looking ahead, both Eric and Jeff agreed that J. Polep will grow, but grow strategically and through smart acquisition.

Eric concluded, “The challenge for us now is to build a good future and a new generation of fresh ideas.”

Eric Polep Named President and CEO of J. Polep Distribution Services J. Polep Distribution Services, a broadline distributor based in Chicopee, Massachusetts, recently promoted Eric Polep to president and CEO, reporting to Jeff Polep, chairman of the board of directors.

“Eric has proven time and again he understands how to grow with the industry and as the business dictates. He represents J. Polep with pride, and his everyday goal is to make sure each customer and vendor sees the outcome of long-term success, which is the foundation to our business,” Jeff said.

He added, “Eric’s continued efforts in customer satisfaction and dedication to the industry have been very influential for J. Polep. Eric demonstrates how the company’s core values are crucial to its competitive success. Those values being staying committed to growing as the industry and business dictates, providing customers with innovative ways to grow their business in the ever-changing marketplace and growing vendor and customer sales.”

J. Polep Distribution Service is the fifth-largest convenience wholesaler in the U.S., exceeding $1.5 billion in sales. The locally-owned and -operated business posted a 30.1 percent increase in overall sales, rising from ninth place to fifth place in the Top Wholesalers report.

Eric will continue to work closely with his father, Jeff, and all of the company’s support staff to ensure effective execution of strategies and operational services.

“I am very excited for this opportunity that lies ahead of me and look forward to the continuing growth of the business,” Eric said. “Upon graduating college, I knew I wanted to go right into the family business and absorb everything I could from my father. Working beside him has always been a dream of mine, and it’s an honor to be named president of J. Polep Distribution Services by him and our board.”

Eric Polep

March 2018

Congratulations

on being named

Innovator of the Year

2018 Wholesaler Innovator of the Year

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2018 Wholesaler Innovator of the Year

A little history…

The Polep family has been in the distribution business for 120 years. Charles Polep founded the original company, Polep Tobacco Co., in 1898 in Salem, Massachusetts.

In 1984, Trade Development Corp.

(TDC) of Amarillo, Texas, purchased Polep Tobacco Co. Jeff Polep worked for TDC as division president but found himself a victim of TDC’s bankruptcy. In 1986, TDC went under and pulled the Polep business and others along with it.

After disengaging from TDC, with the help of a bank and a friend, Jeff restarted the company later that same year.

Beginning with zero customers and a handful of loyal veteran employees, J.

March 2018

Polep Distribution Services was founded. From the beginning, J. Polep salespeople hit the ground running—knocking on doors, making cold calls and delivering product in their own vehicles.

This handful of loyal employees worked for free for two months. With hard work and dedication, the company gradually has grown to where it is today, more than 31 years later.

Today, the fifth generation is running the company, with Jeff’s son, Eric Polep, as president and CEO. With more than 850 full-time employees, J. Polep Distribution Services has truly made its own way within the industry.

Jeff Polep’s great-grandfather Charles Polep and his grandfather Samuel Polep as a youngster.

Highlights of the Modern-Day J. Polep Distribution Services ➸ 1 986: Modern-day company inception (Nov. 24).

➸ 1 992: Acquired White Star Distribution, Pittsfield, Massachusetts.

➸ 1 993: Acquired Climax Candy, North Adams, Massachusetts. ➸ 1 994: Acquired Louis Palley Tobacco, Worcester, Massachusetts; opened satellite warehouse in Worcester.

➸ 1 996: Acquired E.T. Johnson, Warwick, Rhode Island; opened satellite warehouse in Providence, Rhode Island.

➸ 1 998: Acquired New England Wholesale in Woburn, Massa-

chusetts; opened satellite warehouse in Woburn; acquired New England Candy & Tobacco, New London, Connecticut.

➸ 1 999: Acquired L.B.G Grocery Distribution in Hamden, Connecticut; Polep warehouse expanded.

➸ 2 000: Acquired E & J Distributors, Northampton, Massachusetts.

➸ 2 001: Acquired New England assets of Miller & Hartman Wholesale, Mansfield, Massachusetts.

➸ 2 002: Opened satellite warehouse in Milford, Connecticut. ➸ 2 003: Acquired distribution rights of Slush Puppie of Western Massachusetts.

➸ 2 007: Opened the J. Polep Alcohol and Ice Cream Divisions; added 14,000-s.f. warehouse.

➸ 2 008: Opened Rachael’s Food Corp., a USDA-approved com-

missary; acquired T.B.I. in Manchester, New Hampshire; acquired Lesco Distribution Co., Mattapoisett, Massachusetts; opened Specialty Foods Division.

➸ 2 011: Expansion of natural, organic, and specialty division; Rachael’s Food Corp. becomes a separate entity.

➸ 2 013: Expanded footprint to Pennsylvania and New Jersey. ➸ 2 015: Reached $1 billon in sales. ➸ 2 017: Obtained assets from Garber Bros. ➸ 2 018: Broke ground on freezer-cooler/cold dock expansion.

In 2011, J. Polep family members posed for this photo (from left): Rachael, Adam and Drew Kramer and Jeff, Eric and Lori Polep.

March 2018

2018 Wholesaler Innovator of the Year

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2018 Wholesaler Innovator of the Year

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2018 Wholesaler Innovator of the Year

March 2018

J. Polep Breaks Ground on Expanded Warehouse

J. Polep recently broke ground on an $11 million, 37,500-s.f. expansion to the warehouse at its headquarters in Chicopee, Massachusetts.

The expansion will replace the old 12,000-s.f. freezer cooler with a new 12-bay loading dock and freezer-cooler area allowing for more product expansion. The overall J. Polep building complex on Meadow Street is nearly 300,000 s.f.

J. Polep had expanded its warehouse in 2008 but outgrew it two years later.

J. Polep worked with the Chicopee City Council on a real estate tax agreement and, in return, the project will allow J. Polep to add another 22 jobs to its estimated 486 full-time work force.

In a letter to the city council, Brian Neeld, J. Polep’s CFO, wrote in May 2017, “We are considering a facility to continue our growth and to bring new jobs to the Chicopee market. We have studied our future business needs and determined that both would be best served with the addition.”

With the council agreement in hand, J. Polep broke ground on the expansion in early February 2018 with expected occupancy in the fourth quarter of 2018.

Dave Boisselle, J. Polep VP of operations director, said, “We will be able to load more trucks at the same time but overall bring in more SKUs and expand our dairy and frozen product line.”

He also said the expanded building will increase overall productivity and allow the company to handle even more accounts.

Once the move is completed, the current warehouse will allow for more dry goods storage.

On hand for the groundbreaking were Adam Kramer, Brian Neeld, Jeff Polep and Eric Polep.

March 2018

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2018 Wholesaler Innovator of the Year

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2018 Wholesaler Innovator of the Year

March 2018

Progressive Marketing: The Future for J. Polep

The marketing department at J. Polep is developing into a full-service marketing division. They are creating new and exciting marketing improvement solutions and concepts for customers that truly set them apart from competition.

The vision for the department is offer a full range of services to their customers, such as brand identification assistance, custom digital menus and managing social media accounts and printed materials such as window clings and equipment wraps.

The marketing team at J. Polep brings years of experience to the table as well as an understanding of the customer base and market J. Polep serves.

“Creative marketing is the way of the future as it’s financially difficult to compete with national fast-food chains. Well-marketed convenience stores will see an increase in in-store purchases by engaging the on-the-go customer base,” says Kristin Kantany, director of marketing.

J. Polep offers a gamut of services, but publication design is as important as ever.

“The monthly bulletin is a great selling tool for our sales representatives. Not only are there savings for customers in the bulletin, but it contains a great avenue of information,” said Andrea Tassinari, marketing manager.

The monthly bulletin is released a few days prior to the featured promotional month. The department also maintains divisional catalogs—specialty, other tobacco products and food service—that assist in promoting the latest products in the industry.

J. Polep’s focus is to communicate the latest industry trends and increase customer sales. Whether it’s assisting through custom marketing services or through printed publication materials, J. Polep is evolving for their customers and recognize the importance of marketing.

Andrea Tassinari and Kristin Kantany

J. Polep Spotlight on Upcoming Trade Shows J. Polep Distribution Services hosts two large seasonal trade shows annually, one in April and one in September.

The spring trade show is held at the Big E Fairgrounds in West Springfield, Massachusetts. There are more than 350 vendors that participate in the show, offering the best-to-market rates for its customers and presenting a variety of new products and programs.

The “must-see” at the spring trade show is J. Polep’s “Live C-Store Display” showcasing more than 5,000 s.f. of products and food service QSR programs. Customers can interact and learn the importance of product placement, shelving installation and see all food service programs J. Polep has to offer.

This year, J. Polep is featuring a “Millennial Marketplace.” On display will be the

top innovative items on trend for the Millennial consumer. Learn how to capture the “Gen Z” and “Millennial” audience at this new addition.

A professional athlete will be making an appearance at the J. Polep Spring Trade Show. Be sure to register to see all of the new, exciting programs and products J. Polep has to offer.

The Fall Trade Show takes place at Twin River Casino in Lincoln, Rhode Island.

More than 250 vendors participate in this event, again offering the best-to-market rates, especially for their customers.

At every show J. Polep has new, exciting promotions to offer from new technology outlets to the hottest market deals.

Mark your calendars for our 2018 shows: • Thursday, April 12, 2018: Big E Fairgrounds, West Springfield Massachusetts 10 a.m.-4 p.m.

•Thursday, Sept. 13, 2018: Fall Trade Show, Twin River Casino, Lincoln, Rhode Island, 10 a.m.-4 p.m.

March 2018

2018 Wholesaler Innovator of the Year

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March 2018

Great Minds Come Together as J. Polep Welcomes Garber Bros.

Staff & Customers

J. Polep acquiring the assets of Garber Bros. in the spring of 2017 is a story of two prominent regional companies, both ranked in the top 50 in the country, coming together as one.

J. Polep VP of Sales Steve Peterson still marvels at it today. The acquired assets were finalized within days but “our No. 1 challenge was making deliveries at the end of the week for some 800-1,000 Garber Bros. customers. I am, today, literally blown away that we were able to do that.”

Peterson said the 20-plus people from Garber Bros. have transitioned well. “They are solid people with good work habits.”

Peterson, along with many others from J. Polep, recognized the competition between the two companies but also respected the professionalism of the Garber Bros. staffers.

Nearly one year later, J. Polep has successfully transitioned to managing the assets of Garber Bros. and brought along many dedicated employees, including Mike D’Ortenzio, VP of corporate development, and Joe Normand, VP of trade development and sales analytics.

Both D’Ortenzio and Normand, two top executives at Garber Bros., said the news of Garber Bros. closing felt like “a death in the family. It was fast and very emotional.” However, D’Ortenzio said Jeff Polep and his family made the Garber Bros. people feel welcome.

“They were professional and empathetic to the situation,” he Joe Normand, said.

They both agreed it was a challenging transition from Garber Bros. to J. Polep but are happy they are part of one of the largest family-owned wholesalers in the country and the largest in the Northeast.

Normand added, “There was a different kind of competition between us, but overall, there was a great deal of mutual respect.”

He said Garber Bros. and J. Polep melded different cultures. “Things are differ-

Steve Peterson and Mike D’Ortenzio. ent, but different in a good way. It’s been several months now, and I think we have hit a nice groove. I think it’s the best of both worlds.”

D’Ortenzio said, “J. Polep is a very customer-centric company, and I think that is a very good thing. It flows through the entire organization.”

Peterson added, “The addition of Garber Bros. personnel and customers has made us stronger. We have a nice overlay of market share in New England.”

J. Polep Launches Newly Acquired Beantown Coffee Brand

Beantown Coffee, a well-known, quality brand, is an exciting addition to J. Polep’s four current coffee programs.

The food service and marketing departments at J. Polep came together to design a new logo and marketing materials. With this fresh new look, Beantown is ready to be launched to select locations.

“It is important that Beantown is placed in the correct location. We want to make sure each account that serves Beantown is the right fit to represent the brand,” said Adam Kramer, VP of food service and purchasing.

Beantown Coffee is a high quality, proprietary blend with 10 flavors.

“The right marketing and branding is incredibly important for the launch. With our marketing ability, we can drive this brand to new heights,” said Kramer.

J. Polep will have a full Beantown setup at its spring trade show in April. With all new graphics and marketing materials, this display will allow potential new customers to experience the new Beantown feel.

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March 2018

Creative Offerings Put J. Polep’s Food Service Department Ahead of the Curve Food service has drastically evolved over the past 10 years within the c-store realm. J. Polep has been entrenched in food service for well over 30 years and continues to be the industry leader in this category. J. Polep has successfully captured this segment and is working toward growth in the form of creative and innovative programs.

The food service department has a variety of options, including five coffee programs, grabn-go hot foods and sandwiches, multiple pastry options, deli programs and frozen beverages, just to name a few.

Just last year, the J. Polep food service department experienced 18 percent growth in sales.

Leading this division is Adam Kramer, VP of food service and purchasing, and Sarah Binney, director of food service.

Together, Kramer and Binney have 37 years of experience in Sarah Binney and Adam Kramer the category.

“The industry has changed dramatically since I started 12 years ago. When I began as a food service buyer, we were dealing with subs, pastries and coffee,” said Kramer. “C-stores have evolved from gas stations to fast-food outlets. Our product

‘The Spot’

J. Polep’s newest foodservice station is called “The Spot,” serving up burgers, pizza, nachos and more. Its first location is in Leominster, Massachusetts, owned

by New England Farms.

Kramer said the three principles of the program are quality, consistency and mar-

mix needed to change to compete against the Dunkin’ Donuts and McDonald’s of the world.”

Seven years ago, J. Polep was promoting deli programs, and while Kramer believes they are still viable today, the current trend is grab-and-go.

“With moms and dads working today, the world is not only about easy accessibility and quickness but also quality fresh foods,” he said.

Toward that end, the J. Polep food service division has become more service oriented, with the team members acting as food service consultants to its customers. “We are there to teach our customers how to handle, execute and grow the business,” said Kramer.

Kramer also touts the company’s coffee service department, which has service personnel 365 days a year. Led

by John Bonfiglio, the department has seven full-time service technicians and a 24/7 hotline.

Rachael’s commissary has been a tremendous boost to the program, reducing the need for deli cases and cutting the expenses of labor, while promoting grab-and-go items that are quality, fresh and consistent.

Lisa Teal, food service administrator

ketability. J. Polep has created a proprietary menu with the best possible offerings for its customers and then will also help market the program. In addition, J. Polep will train its operators how to execute and merchandise the program, limit waste and aid in cleaning and sanitizing supplies.

The Expanded Ice Cream Division

Binney has worked to expand the J. Polep ice cream division, which began in 2008. The program carries all the top brands, including Halo Top low-calorie high-protein ice cream. In all, J. Polep carries 14 top brands, including three new flavors of the new Baskin Robbins-Dunkin’ Donuts ice cream.

Ice cream is sold year-round, but summertime sees the highest spike in sales and demand.

“We are still growing every year. We are picking up new business, especially within the chain business,” said Binney.

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March 2018

Separating J. Polep from the Rest: Mike Pepin Successfully Directs Rachael’s Food Corp.

In 2008, Rachael’s Food Corp. was established as a separate entity of J. Polep to produce a fresh, quality sandwich program. The goal of the program was to enhance the current grab-and-go menu and capitalize on the current market trends.

Today, 10 years later, Rachael’s Food has grown by leaps and bounds. Its production facility has doubled in size and now boasts a menu of more than 100 items.

Every week, Rachael’s produces 125,000 units and has a six-day production schedule with 110 employees manning two production shifts each day.

Based on the success that Rachael’s has had with J. Polep customers, the division was able to develop new distribution channels like college campuses, hospitals, food service dining facilities and supermarkets, with the biggest growth coming in high-end and premium sandwiches.

The commissary produces fresh, grab-an-go items such as subs, artisan sandwiches, salads, dessert cups and a pizza program, just to name a few.

These items are not only for J. Polep customers but for retail supermarkets such as Big Y, Price Chopper and other distributors as well.

Mike Pepin, VP of Rachael’s Food Corp., oversees every aspect of the company. He is proud that the commissary reached the designation of SQF Level II in 2016. This is a global food safety certification that has since been renewed in 2017.

One of the keys to the Rachael’s commissary success is the extended shelflife products. Using Modified Atmosphere Packaging (MAP), Rachael’s has a full menu of items that are produced with a 14-day life and more than 70 items that have a shelf life of 5-8 days.

“Rachael’s has benefited from the trend of healthy foods with its line of fresh wraps, salads and sandwiches satisfying the consumers’ appetite,” said Pepin. “The menu is constantly evolving to meet the needs of our customers.”

He said the growing demand for grab-and-go items by younger consum- A

ers has definitely led to more business for the higher quality items.

On the horizon are snack packs, a new salad line and dinner entrees.

What sets Rachael’s apart from the competition? “The execution and diversity of our menu, our price points and our packaging. We keep our menu offerings fresh, new and exciting,” said Pepin.

Mike Pepin

production shift at Rachael’s Food Corp.

Merchandising and Store Design a Great Value-Added Service for J. Polep Customers Certainly, one of the most sought-after and popular J. Polep valued-added services is merchandising and store design.

Tim Howell, senior director of merchandising; Steve Picarillo, director of merchandising; and Nicci Lachance, merchandising manager, have more than 80 years of collective experience among them.

“We have years of experience in operations, retail, marketing and merchandising. We know what works to make any location successful, and our performance shows it,” said Howell.

His team provides complete store design and layouts, providing directions on all aspects of store planning and design.

“We want to make every store the best it can be. It’s Tim Howell not about loading every store with all the items J. Polep sells. It’s about adding the right mix for every demographic area,” said Howell.

The J. Polep store design team has created stores from as small as 400 s.f. to as large as 16,000 s.f. Merchandising today is not merely selecting new product and making sure it is in the right store locations; it is creating and arranging the products in visually imaginative and engaging ways.

As merchandising manager, Lachance provides best-in-class planograms that encompass ranking and movements from multiple sources, such as Infometrics, IRI and Nielsen, as well as J. Polep corporate data.

With its new Symphony EYC software, J. Polep has the ability to incorporate store-specific scan data to optimize planograms. The merchandising team focuses on space-to-sales ratio, margins and the impact of high-impulse items.

New items always are a focus at J. Polep. As soon as a new item is

introduced into the J. Polep warehouse, it is cut into store planograms where applicable.

The J. Polep team has experienced, trained merchandisers who know the markets and are able to reset all categories, remove underperforming items and cut in new items.

Howell and his staff also assist store operators with equipment needs such as walk-in coolers, beer caves, stand-alone refrigeration, coolers and freezers, and transaction and foodservice counters, as well as c-store shelving.

A true testament to the talent behind the merchandising team is displayed at J. Polep’s annual Spring Trade Show. Howell and his team construct a 5,500-s.f. model store offering the latest trends in store design and products.

Merchandising is constantly evolving, but Howell and his team are ready for the challenges ahead.

March 2018

S&S

Food Broker Inc.

The right direction for C-Store initiatives

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JOH AND OUR PARTNERS CONGRATULATE

S&S Food Broker Inc. would Like to congratulate J. Polep on being named 2018 Wholesaler Innovator of the Year.

S&S

Food Broker Inc.

The right direction for C-Store initiatives

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S&S

Food Broker Inc.

The right direction for C-Store initiatives

2018 Wholesaler Innovator of the Year

FOR BEING NAMED WHOLESALER INNOVATOR OF THE YEAR

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March 2018

Sales Team Are ‘Sales Consultants’ in a Changing C-Store Market

Growing c-store operators’ sales and revenue opportunities are the goals of the J. “As our sales team has adapted to a changing market, so has our administrative Polep sales department and new business development team. staff. Retailers have implemented new technology to assist with their operations; The sales leadour administrative team must support these technologies. Our administrative ership team comcustomer service representatives manage custom electronic pricebooks, hanprises Steve Peterdle reporting requirements and work hand-in-hand with our IT department to son, VP of sales; support EDI requirements,” said Sheets. “J. Polep has an ongoing commitment Jim Kantany, sales to support c-store operators’ back-office systems. They send staff members to director; Dave conferences and training seminars for continued education.”

Taylor, VP of new J. Polep has experienced double-digit growth over the past eight years and business develophas exceeded $1 billion in sales this fiscal year. ment; and Kathy “We deliver unparalled expertise and wide-ranging products and services Sheets, VP of sales that none of our competitors can match,” said Taylor. administration.

“J. Polep continues to be the industry leader in the food service category in In all, the sales the Northeast region. No other distributor in our market has the expertise to group includes provide quality food service products, programs and services,” said Taylor.

100 members, and He said one aspect that sets J. Polep apart is Rachael’s Commissary. the sales territory Leading the sales team are Jim Kantany and Steve Peterson.

“No other distributor in our region owns and operates a commissary nor has expanded to has dedicated Specialty, OTP, Ice Cream include all of New England, New York, Eastern Pennsylvania and and Food Service category captains to drive as far south as Trenton, New Jersey. sales,” he said.

“We’ve distinguished ourselves as a broadline distributor that can In addition to its product portfolio, J. Pohelp retailers develop product lines and programs that will help lep offers c-store operators additional valstore operators increase margin dollars,” said Peterson. ue-added services.

He continued, “Our district sales managers and field representaJ. Polep’s store design and planogramming tives are on the street every day building relationships and observdepartment can assist with floor plans and ing what’s going on in our market, not sitting behind desks.” merchandising strategies and execution.

Kantany said, “The market has changed dramatically, and our “They utilize software to create fact-based sales team members must act as consultants. The days of a salescustom planograms,” said Sheets. person being an order taker are going away. Sales members must The marketing department offers several offer insight on market trends and introduce new products and promotional vehicles, and c-store operators programs. There is a huge opportunity for us, but we must look at can utilize our in-house graphic designers to business differently.” create custom marketing pieces.

New Business Development Team: Dave Taylor According to Kantany, the emphasis is not on increasing SKU “A great way for c-store operators to see and Kathy Sheets. count but on finding the right product store mix. the products, programs and innovations we “Operators lean on us for advice,” he said. have to offer is to attend our trade shows; they are a must-see,” said Taylor.

Chain Sales Department Offers Many Support Services J. Polep’s chain division provides customers many value-added services and category management reporting solutions, all of which assist the chains in maximizing sales and achieving higher gross margins.

Natalie Taylor, VP of chain accounts, says the department currently services 29 chains that range in size from six to 259 stores. Today’s market also has also a tremendous rise in the number of independent multi-store operators that have joined the chain store groups.

The chain sales headquarter team includes: Michelle Roberts, VP of key accounts; Peter Simard, VP of chain sales; and John Lizardi, sales technology manager and key account manChain Sales Leaders: Natalie Taylor, Peter ager.

The J. Polep chain retail sales Simard, Michelle Roberts and John Lizardi.

representatives are an integral part of the chain team. They are in the field daily setting up new products, monitoring sales trends, reviewing product mix, merchandising, updating shelf labels and assisting in staff training. Michele Haseltine, Jennifer Leidemer, Michael Moore, Tom Morrissey, Apryl Chain Sales representatives: Tom Morrissey, Macrae and Lee Nicolas round Michelle Haseltine, Lee Nicholas, Michael out the retail team.

The chain sales support ser- Moore and Jennifer Leidemer. vices are impressive. With the recent addition of a new software program, combined with Nielsen data, J. Polep will be able to offer their chains customized planograms based on their scan data. Peter Simard, who joined J. Polep from Garber Bros., said, “The access to instant data and reporting for both sales reps and sales managers offers a distinct advantage to the retailers.”

Chain Customer Service

A key component of the department is the enthusiastic, professional and hard-working chain administrative team.

An administrative assistant is assigned to each chain to work with both headquarter and store contacts.

Kara Paley-Ryan, Lori Hardaker, Melissa O’Connell and Laura Crowley assist the chain account customers in price book maintenance, transportation requests, scanning issues, distributions, monthly and quarterly reports, weekly price changes, shelf tags, planograms and daily interoffice support.

Chain Customer Service: (front) Kara Paley-Ryan and Lori Hardaker; (back) and Laura Crowley.

March 2018

Congratulations J. Polep on being named 2018 Wholesaler Innovator of the Year.

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Operators Get Rebate Checks Through J. Polep’s WAM Program

Mark Schmittlein, purchasing director, and Jim Kantany, sales director, are working hard to ensure retailers accrue points through a rebate program with manufacturers and receive rebate money through the WAM Program.

Manufacturers classify WAM as a national account. WAM personally selects the distributors who administer the program. WAM distributors represent the very best: 25 distributors with at least $6.2 billion in sales and sales representatives servicing 19,000 c-stores. J. Polep is the regional distributor serving New England.

Seventy percent of the convenience stores J. Polep services are independents or small chains, and the WAM program provides manufacturers with access to this difficult-to-reach segment.

The advantages for a J. Polep customer are many, including financial rebates for goods sold; information on new product launches and trends; and getting on the radar of some manufacturers that normally would not be dealing with a single-store operator.

According to Schmittlein, the WAM program is a win for J. Polep and participating manufacturers because it grows sales volume. Operators like it because they get paid selling SKUs they sell every day. Retailers also can receive extra bonuses for endcap space.

For J. Polep, the challenge is helping the operator to realize the rebate potential. A J. Polep customer gets advice on how to realize maximum WAM potential from a sales team member or from Schmittlein or Kantany.

“There is a lot of opportunity,” said Kantany. “But we have to get the right mix for each store.”

J. Polep recently received several awards from the national WAM office. In 2017, J. Polep received the WAM MVP at the National Association of Convenience Stores (NACS)

Show for being the Best Performer in All WAM Mark Schmittlein (left) and Jim Kantany hold the J. Categories.

Polep WAM awards.

There also is a WAM Distributor Pledge that speaks to their commitment to manufacturers. WAM distributors are fully committed to the WAM program and to the WAM manufacturers.

They are focused on executing at the highest level for the manufacturing partners on a continuous basis and allocate substantial additional resources, time and effort within all departments of their organization on behalf of the WAM partners to achieve their performance goals.

They carry out numerous specific and value-added services that are exclusive to the WAM manufacturers.

Great Customer Service: A Key Foundation of J. Polep’s Success

Customer Service Team: (front row) Kimberly Rose and Shelly Carner; (back row) Emily Maldonado, Roseanne Soto, Ashley Gonzalez and Heidi VonKahle (not pictured: Irene Peterson).

Jeff Polep, company chairman, attributes the success of his company to product diversification, a dedicated working staff, a loyal customer base and a commitment to superior customer service.

Shelley Carner, director of customer service and a longtime J. Polep staffer, believes the success or failure of a company depends highly on its quality of customer service. “Good customer service, all around, is the lifeblood of any business,” she said.

Carner said J. Polep strives to meet and exceed expectations of its customers. “We want them to have a positive experience. We would not be where we are without our customers, and they deserve nothing but the best.”

To accomplish this, Carner has five representatives and a switchboard operator to assist customers on a daily basis. The customer service office is open Monday-Thursday, 7:30 a.m.-4:30 p.m. and Friday, 7:30 a.m.-3 p.m.

On weeks when there are holidays, the office is open Saturday 8 a.m.-1 p.m.

Beyond all the technology resources J. Polep invests in, Carner says a lot of customers still want the personal touch of speaking with a live representative. “They build relationships; it is not just a business transaction,” she said.

As well as assisting in placing orders, her welltrained staff also can assist customers in learning about products, programs, promotions and services that J. Polep provides.

The customer service team works diligently with all other departments to rectify problems and ensure their customer is satisfied. When faced with a problem, whether it’s related to deliveries, products or any other concerns, they work closely with all J. Polep divisions to communicate and resolve the issue in a timely manner.

“All of us at J. Polep take pride in working toward keeping our customers happy,” said Carner.

Accounts Receivable Focuses on Customer Service and Security Benefits

Kathy Riess, accounts receivable (AR) manager, and her nine-person team lead the J. Polep AR department.

Customer service is a primary focus no matter what department you are dealing with at J. Polep.

In AR, someone is always available to answer the phone. “We take pride in our customers speaking with a person when they call,” said Riess. “We have bilingual team members, those that have worked in or managed a c-store, worked for a coffee service company and those that have previously worked at J. Polep in customer service,” Riess continued. “It’s a well-rounded group that works together to concentrate on the individual customer’s needs.”

In an age of fraud and compromised accounts, J. Polep has taken proactive measures to protect its Accounts Receivable Team: Brittany Rainville, Ruth Pardee, customers’ confidential financial information. J. Polep employees use an encrypted program to subMary Anne LeClair, Isiz Rivas, Heidi Munoz, Lou Denys, mit sensitive customer information, including credKaren Shovak, Dez Desotell, Kathy Riess and Cindy Warren. it applications and any associated documentation

containing banking information. All information is retrieved from a dedicated, secure terminal to mitigate security threats.

“We treat our customers’ information with the care we would want for ourselves,” Riess said.

Several AR payment options emphasize the customer service and security protection goals. Electronic Fund Transfer (EFT) simplifies the collection process for both its customer and J. Polep. Checks do not have to be left at a store where they can be lost or used for possible fraudulent purposes. This also provides for a smoother experience when the driver’s sole focus is a courteous and efficient delivery. An additional option is Electronic Checks (eChecks), a secure, paperless form of payment. Customers can work directly with their AR representative to process their payments with benefits similar to an EFT. As a customer service-focused team, the J. Polep AR Department is invested in balancing and protecting the needs of both the company and the customer.

March 2018

Congratulations!

On being named Innovator of the Year From your friends at

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J. Polep Specialty Division Leads to ‘Better-for-You’ Foods Options in C-Store, College/University, Business & Industry and Healthcare Segments One of the primary factors contributing to J. Polep being considered innovative is that it has spotted trends well in advance of the competition. For more than eight years, J. Polep has been in the “better for you” (BFY) arena.

Creating the Specialty Foods segment was one of the ways that the company showcases its diversification within the c-store industry.

Erin Mercolino has worked for J. Polep for 10 years, with her primary role as the specialty foods director. “Leading the specialty foods division and developing a team of visionaries dedicated to growing this segment within the c-store channel has been so invigorating. We have watched brands like Chobani flourish by starting off as a niche product to now being in the cooler of convenience stores all over the map,” she said.

The vision when J. Polep launched the specialty foods division was to provide the college and university (C&U) segment, which it already was servicing, with the products that students were looking for. The demographic was the health-conscious, label-reading Millennial looking for BFY selections. Now those Millennials are today’s young professionals and retail shoppers.

According to Mercolino, “We have grown with this generation from when they first started college eating Pirates

Booty. Now they’re picking up products like Noosa Yoghurt as an indulgent treat from their local convenience store on the way home from the office.”

The J. Polep specialty foods division focuses on sustainable, allergen-free, imported and ethnic offerings suitable for all the channels the company serves.

“We have come a long way,” Mercolino said. “It’s not a segregated channel anymore. Even larger chains we service are cutting specialty foods into their sets and making it readily available. You will see Newman’s Own marinara sauce right next to Prego. This did not happen overnight.”

The specialty division has expanded to more than 3,000 SKUs during its eight-year history.

“In the c-store channel, I am finding that operators are looking to find a nice balance between the traditional c-store consumer and the new generation. In eight years, consumers are much more educated and informed about their food choices and what they are putting into their bodies. More and more people are looking for organic, vegan, better-for-you and plant-based options,” she said.

With support of Aramark, The Compass Group and Sodexo as well as 15 or more self-ops, J. Polep has been servicing the C&U segment for the past 20 years. These school stores have evolved so much in the past decade that

many rival a Whole Foods Market.

“We service almost every college and university within our footprint, including the No. 1 dining facility in the country,” Mercolino said.

“We are very proud of our customer base and feel that the partnerships with these locations have continued to help us constantly elevate our product offerings. With so much innovation in this Erin Mercolino segment, it is exciting to experiment with new trends.”

Mercolino’s team consists of four specialty sales representatives. Each is responsible for product launches and demonstrations to generate excitement for the innovation brands in the field.

Representatives also are responsible for maintaining current product lines, line extensions and resolving any issues that come up. With the help of her team, Mercolino leads the way at J. Polep to a brighter and healthier future.

In addition to running the specialty foods division, Mercolino has continued her growth with J. Polep, now working additionally in the chain sales division calling on corporate headquarters for six major chains the company services.

J. Polep Continues to Invest in Transit Equipment and Training In the wholesale industry, the delivery fleet is crucial. J. Polep is investing in technology, training and communication to help improve its transportation services to its customers.

With a nine-state territory, J. Polep has a large transportation roadmap covering all of New England, New York, northern New Jersey and eastern Pennsylvania. In all, J. Polep has 105 trucks and 130 drivers completing deliveries in a five-day workweek averaging 1,200 deliveries per day.

Besides its main Chicopee, Massachusetts, headquarters, J. Polep has six satellite transportation centers in Manchester, New Hampshire; Wilmington, Massachusetts; Providence, Rhode Island; Stratford, Connecticut; Albany, New York; and Allentown, Pennsylvania.

Jon Lasko, director of transportation, said overall safety has been improved with an onboard event recorder and incab camera systems for all trucks. In addition, J. Polep has the right refrigeration within all the trucks to carry dry, frozen and refrigerated products.

With the new Descartes Delivery Management Program, J. Polep drivers soon will be scanning all boxes as proof of delivery, much like the United Parcel Service.

J. Polep also is using Roadnet for more efficient delivery scheduling.

Maggie Valentine, director of logistics, says J. Polep is focusing on driver-retention incentives, flexibility in work scheduling and more training for drivers even when they arrive at J. Polep with truck certification. This training includes work safety, customer service skills and work efficiency.

Lasko also said the company is listening to its experienced drivers to determine what young and newly hired drivers should be learning in training.

All this is paying off, as the number of safety incidents at J. Polep is down 21 percent since 2016 because of improved driver safety.

Dave Boisselle, Maggie Valentine and Jon Lasko.

March 2018

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CONGRATULATIONS J. POLEP ON BEING NAMED

2018 WHOLESALER INNOVATOR OF THE YEAR!

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J. Polep Distribution Services Raises More Than $1 Million for Charity A family-owned and -operated business, J. Polep Distribution Services understands the importance of supporting local charities, non-profits and businesses.

In 2018, the company will reach more than $1 million in total donations to The Yeshiva Academy in Longmeadow, Massachusetts, which it has supported for the last 13 years.

The annual donation assists The Yeshiva Academy in providing important early education. To date, the company has raised $900,000-plus through the J. Polep Family Foundation Golf Tournament.

“This is something we are truly proud of, knowing that we can help support local organizations,” said Chairman Jeff Polep. “We really strive to continue making a

difference in others lives, especially those within our community. A special thank you to all of our business partners for helping make this happen.”

J. Polep has been hosting a company golf outing in honor of Jeff Polep’s late parents, Mort and Anne Polep. This annual golf tournament is one of the company’s most successful fundraising events.

Many of J. Polep’s vendor and business partners from throughout the country generously support the event along with the Polep family.

On June 18 this year, J. Polep will host the 13th Annual Golf Tournament in Feeding Hills, Massachusetts. This event hosts 200-plus golfing participants, with a post-golf reception at Oakridge Country Club.

Latest Technology Department Advances Allow More Customer Account Control

J. Polep has and continues to invest heavily in the latest technology upgrades to its computer network and electronic devices, both internally and for its customers.

The thrust of the program is for every J. Polep customer to have greater control and access to information to better manage ordering, billing procedures and facilitate speed to market and program participation.

Recently, J. Polep completed a network upgrade and additional software upgrades to its operational, merchandising and Windows program.

The department, which includes Dan O’Connor, IT manager, Elaina Gallagher, IT director, and John Lizardi, sales technology manager and key account manager for chain accounts, are providing support for deployment of new technologies for both staff and customers. The department currently is involved in the setup of computers and networking equipment for the $11 million warehouse expansion project and is working to retire old physical servers and end-of-life technologies.

The IT/technology department has 10 staffers and is open 24 hours a day, six days a week. An emergency support line also is available for the seventh day.

Ordering Apps, Devices and EDI

Dan O’Connor, John Lizardi and Elaina Gallagher.

The technology department offers more than six different methods of ordering for its customers.

In addition to being able to order from traditional browser-based web portals such as PolepLink or PolepMobile, J. Polep has a variety of ordering apps for smart devices, J. Polep Plus, PlusMobile and MOBI. No matter which device is preferred—smartphone, tablet or computer—J. Polep provides a solution. In addition, it offers X12 standard EDI (Electronic Data Interchange) as well as several retail industry software interfaces.

Windows/AS400 HA Solutions

Network Upgrade

New Customer Tools

J. Polep has completed a major network upgrade, moving from a 10/100 to 1GB backbone, which allows for more traffic and leads to increased productivity.

Gallagher said the upgrade allows for better-quality devices to be used by warehouse employees for increased performance. The upgrade allows the technology department better access and monitoring tools and will allow for better problem detection, less downtime and quick solutions to the problems.

O’Connor said the network upgrade ultimately allows for more people on the network, state-of-the-art held scanners and voice-picking capabilities.

Gallagher said over the past year the technology department has been working on obtaining a high availability solution for the J. Polep IBM iSeries Primary ERP (Enterprise Resource Planning) system for the company and Window Servers.

She said the technology department has selected services for each of “these critical pieces of our business. Installation and implementation of these services has been completed, and now we are entering the testing phases for each.”

Lizardi is the bridge between the technology department and the sales and chain sales departments and is actively involved in testing new applications, creating user manuals and providing training for both sales staff and customers alike. This is crucial for customers to self-manage their accounts for pricing, inventory, reporting, promotions and administration.

With the new data and programs, customers are able to print shelf tags, calculate costs and profit margins for food service items, manage inventory, view cigarette market share and get up-to-date reporting, including year-to-date sales comparisons.

Keen Watch on E-Cigarettes and OTP Product Pay Dividends for J. Polep Customers Veteran J. Polep employee Rich Finestone, tobacco category manager, has kept a close watch on e-cigarettes and Other Tobacco Products (OTP). The combination of his hard work and the work of the sales force has helped grow the category to where it is today.

The e-cigarette growth over the past few years has been tremendous. J. Polep continues to be a leader in the sale of traditional e-cigarettes and vape products throughout the marketplace.

Thanks in large part to the right product mix, e-cigarette sales have exploded from $3 million to $10.5 million annually, while anticipating an even greater year in 2018 with an excess of $15 million in sales. J. Polep is projecting another record-breaking year within the entire OTP/e-cigarette category in 2018.

Finestone attributes a lot of the success to information and education of customers as well as the J. Polep sales

team.

“Every year we provide an OTP catalogue that provides invaluable information, trends in the marketplace, top ranking items by category as well as individual by state planograms for both our customers and sales team to sell from,” he said.

“We pride ourselves on the shared partnerships with each manufacturer to provide our customers with the best product mix, pricing and promotions to drive sales as well as executing programs that result in increased sales and profits.”

Finestone believes the sky is the limit for this category, and he is excited for the future.

Rich Finestone holds the J. Polep OTP catalog.

March 2018

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2018 Wholesaler Innovator of the Year

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