Bergen Brunswig Announces Contract With Big A Drug Stores
Orange, CA - June 26, 2001 - Bergen Brunswig Drug Company (BBDC), a subsidiary of Bergen Brunswig Corporation (NYSE: BBC), has announced a new exclusive five-year contract with Big A Drug Stores, which includes 15 Drug Emporium stores recently acquired by the Big A chain.
The agreement, which combines a previous contract with Big A, is expected to generate $80 million in incremental revenues to Bergen annually. Under terms of the contract, BBDC will provide pharmaceuticals and over-the-counter products to 22 total stores in the expanded chain throughout California. The stores will be sizeable, with an average size of 30,000 square feet and, as a result, will feature a new Good Neighbor Pharmacy™ (GNP) profile, including many of the products and services offered by major chain drug stores.
"We are very excited to partner with Ed Dallal, owner of Big A Drug Stores, a long time customer of Bergen and a strong supporter of GNP," said Mike Quick, vice president, Retail Sales, BBDC. "Using Drug Emporium's large footprint format will provide GNP's independently owned pharmacies with stores the size of a national chain, but at the same time, maintain Good Neighbor Pharmacy's recognition of branding, buying power and their renowned, local and friendly pharmacy relationship with surrounding communities."
Ed Dallal added, "This relationship will not only bring out the best of what a large chain has to offer, but it will also add the superb reputation of GNP, which epitomizes the friendly corner drug store pharmacist that has been a part of the fabric of American life for decades."
Good Neighbor Pharmacy stores have proven to be a respected and desired independent pharmacy as shown by a recent study by Ortho Biotech, which showed the stores to be the seventh most preferred chain in the nation."
As part of the agreement, Big A will continue to utilize many of Bergen's successful programs including Generic Purchasing Program™, Private Label, Today's Healthcare™, Interlinx™ Reporting and Plus Care™.
Tim Ziemke, executive vice president of Big A, commented, "We are pleased to be associated with such a reputable network of independently owned and operated pharmacies. The fact that we are now capable of expanding the offering of products, services and technology and leveraging the size and buying power for our various drug stores, speaks volumes for GNP."
Big A Drug Stores Inc. is a chain of pharmacies located throughout California. Drug Barns in Sunnyvale and Colima offer deep discounts on prescriptions and health care products. Drug Fair in Fresno, Big A Drug Stores in Long Beach and South Gate, and Camelot Drug in Lomita, all offer competitive prices for various health care needs. Big A offers full product lines in over-the-counter medicines, cosmetics, health and beauty aids, juice and soda, beer and wine, food, candy, and cigarettes. Several stores have post offices and all stores offer authorized Western Union Money Transfer and Money Orders, phones, electricity, and cable bill payment centers.
Good Neighbor Pharmacy is the nation's premier network of independently owned and operated community pharmacies served by Bergen Brunswig. There are more than 2,000 pharmacies nationwide operating under the Good Neighbor Pharmacy name. To locate the Good Neighbor Pharmacy nearest you, call 1-800-GNP-STOR (1-800-467-7867), or access the Internet website at www.myGNP.com.
Bergen Brunswig Corporation, headquartered in Orange County, California, is a leading supplier of pharmaceuticals and specialty healthcare products, as well as information management solutions and consulting services. Bergen's customers include the nation's healthcare providers (hospitals, nursing homes and physicians), drug stores, manufacturers and patients. Through its subsidiaries, Bergen provides product distribution; logistics; pharmacy management programs; and Internet fulfillment strategies designed to reduce costs and improve patient outcomes across the entire healthcare spectrum.
Except for historical information, all other information set forth in this press release, such as earnings forecasts and earnings rate projections, consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those projected or implied. Such statements may be identified by the use of forward-looking language such as "may," "will," "should," "expect," "anticipate," "estimate," "believe," "think," "continue" or the negatives or other variations thereof or other similar terminology. Such risks and uncertainties include the risks described in exhibit 99(a) to the Company's Annual Report on Form 10-K for the year ended September 30, 2000 and in other reports and exhibits filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, the costs and difficulties related to the integration of acquired businesses, the loss or disruption of one or more key customer or supplier relationships, changes in the distribution outsourcing pattern for pharmaceutical products and/or services, the ability to obtain general financing or financing rates that would be compatible with the Company's business operations, and the costs and other effects of governmental regulation and legal and administrative proceedings. The Company assumes no obligation to update the information in the release.
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