The problem is that it costs Snowville about $.70 to put a carton of milk on grocery store shelf in Columbus. By the time the store marks it up, it is about a $1.00 of what our milk costs the consumer.
We hope that Kroger will choose to bring our milk into their stores through their own very efficient distribution, rather than require us to deliver to each store individually.
At Kroger stores we are paid by what goes across the cash register, so any delivered but unsold milk is a loss to Snowville.
Based on our ending 2014 evaluation of profit in individual stores, we could not justify staying in stores we were serving at a loss. Only on that basis did we make the hard choice to stop serving certain Kroger stores.
We are about to announce price changes that we hope will encourage grocery stores like Kroger to either have us deliver to their warehouses for their own distribution, or to purchase from distributors who can more efficiently deliver because they are providing a larger group of products.
Thank you for supporting Snowville,
Warren and Victoria Taylor, Co-owners