FLEMING USING DAYMON AS PRIVATE-LABEL BROKER

STEPHEN DOWDELL Additional Reporting: GAIL ROBERTS

OKLAHOMA CITY -- Fleming Cos. here has engaged Daymon Associates to help it procure, merchandise and market its expanding private-label lines.

Suppliers aligned with Daymon, a national brokerage firm based in New York, will now provide a large part of the wholesaler's corporate brand products, according to Fleming.

Company officials said Daymon was chosen as a private-label broker in part because of its sophisticated marketing expertise, including integrated computer networks for gathering sales and marketing-related data.

"Overall, this is just another step in Fleming's approach to re-engineering the business for the future," Robert E. Stauth, Fleming president and chief executive officer, said in a statement. "This relationship offers us some exciting new tools to add to those we already have."

The Daymon deal supplants relationships the wholesaler had with Marketing Management, Fort Worth, Texas, and Federated Foods, Chicago.

"The reason we are changing from current food broker relationships is we feel Daymon is a lot further advanced in their technology, category management and marketing skills, particularly for store brands," said John Huffman, senior vice president of procurement and sales for Fleming.

"As representative of the vendor, in this case any manufacturer that focuses on store brands, Daymon will help us increase volume and retail to the consumer. They will help us in growing our store-brand business and increase market penetration at retail," Huffman said. "Daymon will interface with retailers and us using marketing skills to help sell our store brands to the ultimate consumer."

Daymon will have input on factors such as sourcing, pricing, assortments and shelf placement. The broker will develop procurement, marketing and selling plans. It also will collect and analyze available market data about major private-label categories, such as performance of competing national brands, for strategic use by Fleming.

In the statement announcing the agreement, Stauth said the change in brokers will benefit Fleming's affiliated retailers by further driving costs down and by providing new services and new technology not available previously, as well as helping to drive sales.

Fleming services more than 2,900 supermarkets in 36 states.