PLM transitions distribution in California
Paleteria La Michoacana (PLM), the Modesto CA-based manufacturer of Hispanic ice cream treats, has completed the transition of its distribution to independent distributors. PLM signed long-term agreements with these independent distributors of frozen food and ice cream: West Pico Foods, Quality Ice Cream, and Wonder Ice Cream.
“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,” said company president Ignacio Gutierrez. “The costs of a DSD (direct store delivery) fleet just did not make sense since our sales are so seasonal and the efficiencies that the major retail and ‘big box’ chains demand just made it untenable financially and operationally.”
The company transitioned its entire California DSD to independent distributions in May, though it began incrementally as early as 2009. According to major retailers, DSD has become a fragmented, inefficient system that clogs supermarkets and “big box” loading docks and floor space with as many as 50 to 60 deliveries per day. The general consensus among leading chains is that DSD is arcane and complicated and takes store operators away from servicing customers.
“We have seen this progression here in California as more chains have requested we distribute our product through accepted independent distributors loaded with other frozen products (pizzas, frozen meals, and meats),” said Patricia Gutierrez, vice-president. “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 retailers and our customers 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). In Northern California, Wonder Ice Cream is now handling the Bay area and the Central Valley, PLM’s legacy market.
PLM, founded in 1991 in Turlock CA, produces, markets, and distributes ice cream and other desserts. For more information, visit www.ytupaleta.com.