Becoming a D.C.I. Member/Shareholder – An Overview

Distribution Canada Inc. (D.C.I.) is a buying group consisting primarily of progressive, independent grocers, formed in 1981. These grocers saw the corporate chains obtaining better net costs and rebates than independents enjoyed. Realizing strength lay in numbers, they combined their volumes, gaining higher rates and lower net costs as a direct result. A general rule of thumb indicates shareholders enjoy net earnings increases of .25% to 3% of gross sales, (e.g.) $5,000,000 per annum - $12,500 to $150,000 per annum extra earnings).

Uniting their volumes meant the buying group had to accept financial responsibility for members/shareholders’ purchases. The group thus became the purchaser of record.

Members/shareholders of D.C.I. have found it beneficial to buy certain commodities on a “Bulk Buy” basis. Vinegar, popsicles, bakery products, apple juice, and paper products are just some of the “Bulk Buy” products. D.C.I. also constantly monitors the marketplace to keep members competitive in products such as spices, dairy products, bakery products, and non-food items.

D.C.I. takes pride in being able to send rebates to members on a monthly basis. This is a much shorter time frame than commonly found in buying groups, allowing members/shareholders to enjoy the benefits more quickly. As a result, members/shareholders are again, more competitive in the marketplace.

D.C.I. dialogues with consumer groups to help consumers and retailers understand each other. The retail food industry was found to know very little about consumer needs. Searching for a better understanding will lead to mutually beneficial relationships between independent grocers and consumers.

Due to its approach to business and its relationship with suppliers, D.C.I. has experienced dramatic growth over the last five years. As of February 1, 1999, membership in D.C.I. stands at 70+ members, representing over 3,800 stores and annual retail sales over $5 Billion.

Grocers join D.C.I. through the purchase of a $1,500 share certificate, with each member/shareholder owning one share. There is also an annual administrative fee of $2,500 used to operate the D.C.I. office. Minimum Sales Volume per member must be over $5 Million per annum; on this basis, the $2,500 annual administrative fee would be paid back more than 10 times annually depending on use of current agreements with direct suppliers.

D.C.I. invites independent wholesalers and supermarket operators who are unaffiliated with any other buying group or franchise program to join by contacting Brian Parker at the D.C.I. office.