June 25, 2012 / PRNewswire

Paleteria La Michoacana Transitions
California Distribution
• Sign long-term arrangements with leading independent ice cream distributors – West Pico Foods, Quality Ice Cream and Wonder Ice Cream to cover the entire State of California

MODESTO Calif., June 25, 2012 / PRNewswire / - Paleteria La Michoacana ("PLM"), the Modesto based manufacturer of ice cream treats Hispanic, Announced finalizing the transition of its distribution to independent distributors. Agreements signed long term PLM With The state's leading independent distributors of frozen food and ice cream - West Pico Foods, Quality Ice Cream, Ice Cream and Wonder. According To President, Ignacio Gutierrez, "This has been in the works since late 2010 When We Decided to bring in new capital to finance our growth and get more efficient in our plant and distribution". "The costs of a DSD (" Direct Store Delivery ") fleet did not just make sense since our sales are seasonal and the efficiencies so That the major retail and 'big box' chains demand just made it financially and operationally untenable."

The company transitioned its Entire California DSD over to independent distributions in May, though it incrementally Began as early as 2009. ACCORDING to major retailers, DSD has a fragmented and inefficient Become That system clogs supermarkets and "big box" loading docks and floor space with as many as 50 to 60 deliveries per day. The general consensus among the leading chains Is that DSD is arcane and complicated and takes away from store operators servicing customers.

"We have seen this progression here in California as more chains have we distribute our product Requested accepted through independent distributors loaded with Other frozen products (pizzas, frozen meals, meats, etc.).", According to Vice President, Patricia Gutierrez. Gutierrez continued, "We have worked with Our own DSD and These distributors for years so the transition has been pretty easy and we expect very little disruption to our customers and retailers Throughout The State.

The Southern California market is now being serviced by West Pico Foods (Los Angeles area) and Quality Ice Cream (San Diego and Orange County). According To Don Lubitz of West Pico Foods, "We are thrilled to Develop an even closer working Relationship with PLM. The brand is one of the fastest growing in the novelty ice cream in the state space and Provides an Opportunity to West Pico Grow with them . We have been working closely and increasingly since 2009 and it was the natural next step "

In northern California, Wonder Ice Cream is now handling the Bay Area and the Central Valley, PLM's legacy market. According To Alex Alfar of Wonder Ice cream, "Our team has worked tirelessly the last several months planning and executing on switching over. We expect little impact on Consumers and retailers".

In closing, according to Ignacio Gutierrez, "The new system is expected to support even better service levels for customers (more frequent service, broader geographic coverage, etc.), provide greater opportunities for the independent distributors through larger drop sizes, given the combined volume resulting from their other frozen products and permit PLM better control of its distribution expenditures." PR Newswire

About Paleteria La Michoacana

Paleteria La Michoacana founded in 1991 in Turlock, CA, is a leading producer, marketer and distributor of premium ice cream and other fine desserts. The Company is known for its fine quality and methods used to produce its paletas, using natural fruits and ingredients of the highest quality. These bars come in traditional, Hispanic-oriented flavors, including Coconut, Arroz con Leche (Rice Pudding), Guava, Walnut and Cookies n´ Cream.

For more information or questions regarding the transition and service levels, please visit http://www.ytupaleta.com or contact Paleteria La Michoacana, LLCOffice at (209) 523-7413


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