10 months, 3 weeks ago by Scott Hardy
New Joint Venture with Mexico-based distributor RJ Alimentos
MT. STERLING, IL – Dot Foods, the United States' largest food industry redistributor which employs 2,230 at its Mt. Sterling distribution center, announces plans to take its foodservice redistribution concept abroad. Dot Foods and Mexico-based RJ Alimentos today announced the formation of a joint venture redistribution company, to be named RD Amerimex. RJ Alimentos is owned and operated by Ricardo Garza and family. Dot Foods' Mt. Sterling facility is one of nine distribution centers nationwide.
"When Ricardo (Garza) approached us several years ago about expanding the redistribution concept into Mexico, we quickly realized it was an opportunity we needed to explore," said Dot Foods CEO John Tracy. "There are several areas outside of the US where we believe the redistribution concept will work. Mexico is just one of many potential international expansion opportunities for Dot."
In Mt. Sterling, this expansion means more jobs. The Mt. Sterling Distribution Center is currently looking for 12 new drivers and 25 warehouse personnel. "On the local level, our employees are ready for this challenge. We are recruiting more warehouse personnel and drivers not just for this new venture, but also to prepare for fall volume," said Joe Tracy, President of Dot Foods. "We're excited about the increased demand and the potential new opportunities for growth that this expansion will bring to Dot Foods and the Mt. Sterling distribution center." Those interested in the positions available at the Mt. Sterling Dot Foods DC may apply online at www.dotfoods.com/careers or www.DriveForDot.com.
Over the past decade, Mexico has become a major player in the travel and tourism industry. With more than 17,000 hotels and 428,000 restaurants nationwide, including numerous American franchise restaurants, there is clear need for the efficiencies of redistribution in the foodservice industry.
"We've spent a lot of time trying to understand the distribution channels and cultural differences of our counterparts in Mexico. We know that for an expansion into Mexico to be successful, we need a local resource. We couldn't be happier about partnering with Ricardo and his family."
RD Amerimex will bring redistribution to a complex and often-fragmented distribution network in Mexico. Much like Dot Foods' U.S. customers, customers of RD Amerimex can order multiple product lines on one shipment without having to meet manufacturers' minimums.
RD Amerimex products will be redistributed from its warehouse in Monterrey to distributors all across Mexico through temperature-controlled trucks. Customers of RD Amerimex will have access to the majority of Dot Foods' 105,000-product offering. RD Amerimex will begin servicing customers in summer 2014.
"Through our partnership, RD Amerimex has the opportunity to provide foodservice distributors and chain restaurants a solution to complex supply chain issues in Mexico," said Ricardo Garza. "Many distributors in Mexico have recognized increased demand for American foodservice products. We can provide a viable solution for distributors looking to get consistent, quality products their customers want and in the quantities they need them."
By meeting the demands of chain restaurants and foodservice distributors for a consistent, efficient offering, RD Amerimex will bring additional value to many of Dot Foods' 650 supplier partners by tapping into a completely new market. In addition, RD Amerimex will alleviate the headache of intricate customs processes and relationship building often required for manufacturers to penetrate the Mexican marketplace.
"With this new venture to take Dot Foods international, we're excited about the possibility of growing our supplier partners' business in a new market," said Dot Foods International Sales Manager Jeff Adams. "It's an opportunity for our manufacturers from a new business perspective. They'll be able to reach customers they may have never otherwise touched."
"The goal is to take redistribution, in really the same format as we do right now, into Mexico," Adams said. "Just like any of our other business, we want to provide a solution. RD Amerimex will be good for Mexican distributors and our existing supplier partners. We anticipate positive growth for everyone with this investment."