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ABC Q1 2013 revenue up 6%

BY Michael Johnsen

VALLEY FORGE, Pa. — AmerisourceBergen on Thursday reported revenue of $21.5 billion, up 5.7%, for the first quarter ended Dec. 31. “We are off to a solid start in our fiscal year 2013, with December quarter results in line with our expectations,” said Steven Collis, ABC president and CEO. “During the quarter, we successfully implemented our previously announced new contract with our largest customer, and we continued to make progress on the integration of World Courier. As we look ahead, we are well-positioned to meet our objectives for the year and to continue to have significant financial flexibility.”

Pharmaceutical distribution revenues totaled $21.1 billion, an increase of 5% compared to the same quarter in the prior year. The increase was credited primarily to an increase in sales volume resulting from the implementation of a new contract with the company’s largest customer, offset in part by the loss of a food and drug retail group purchasing organization. 

Despite the headwind of the lost customer, Collis was confident AmerisourceBergen would reach previously projected earning targets. “Looking ahead, [AmerisourceBergen] continues to expect diluted earnings per share from continuing operations in fiscal year 2013 to be in the range of $3.06 to $3.16,” Collis said. “Key assumptions supporting that range are: revenue growth in the 6% to 9% range; operating income growth in the 3% to 5% range; an operating margin decline in the high single- to low double-digit basis points range; and free cash flow in the range of $750 million to $850 million, which includes capital expenditures in the $180 million range. Subject to market conditions, we expect to spend approximately $400 million to repurchase our common shares in fiscal year 2013.”


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Pampers Swaddlers available in new sizes

BY Jason Owen

MINNEAPOLIS — Pampers, part of Procter & Gamble, is expanding its line of Swaddlers diapers, the company announced this week. Previously available only up to size 3, the company will now offer sizes 4 and 5 at Target stores nationwide. From Jan. 27 through Feb. 2, Target guests will receive a free $20 Target gift card with an in-store purchase of two Pampers Swaddlers, Cruisers or Baby Dry economy packs.

“Pampers Swaddlers have been the No. 1 choice of hospitals for years, and we are excited to launch these additional sizes,” said Greg Barntsen, Procter & Gamble marketing manager. “We listened to parents who said they wanted to keep their toddlers in Swaddlers, and we’re pleased to offer them that option now.”

According to Audrey McClelland, mother of four children under the age of 8 years — with one more on the way — and founder of MomGeneration.com, moms are looking for ways to keep it simple and avoid unnecessary disruptions to established routines. “Swaddlers is a diaper I’ve always loved, and I’m so excited it is now available in bigger sizes at Target,” said McClelland. “Now parents can keep their little ones in Swaddlers throughout all their diaper-wearing years.”


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Jewel-Osco kicks off celebrations for Black History Month

BY Michael Johnsen

ITASCA, Ill. — Supervalu’s Jewel-Osco on Wednesday announced that they will celebrate Black History Month with the company’s 14th annual "A Taste of Black History" program, which honors the contributions and achievements of the retailer’s African-American vendor partners.

"’Taste of Black History’ gives us an opportunity to thank our African-American vendors for everything they do for our company and our customers," stated Brian Huff, Jewel-Osco president. "This outstanding group of business men and women plays an important role in our success, and we hope consumers realize that when they purchase African-American vendor products, they are supporting these wonderful entrepreneurs."

The initiative kicked off on Thursday with a VIP shopping event for customers featuring customer tasting events. The kickoff event also will feature live music by Chicago band Zzaje’ and an appearance by celebrity chef Josh Marks, who was the runner-up on the third season of the FOX reality cooking show "MasterChef." Marks, now the national spokesman for Jewel-Osco African-American vendor Real Men Cook, will prepare dishes for customers to sample and will be available for pictures and autographs. 

In addition, the retailer will donate a total of $10,000 to three community organizations, including Chicago’s St. Felicitas Church Food Pantry and Grant A Wish Food Pantry, which were chosen for their commitment to hunger relief. ­Customers will help select a third donation recipient by casting votes for their favorite African-American vendor products during the kickoff event. Jewel-Osco will provide the third contribution to the charity selected by the brand that receives the most customer votes.


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