Industry Code: 69916
Employers in this classification sell and distribute food, beverage, liquor and tobacco products, along with related merchandise on a wholesale basis to retail stores, hotels, restaurants and institutions. To be eligible for this industry, food distributors must be independent of manufacturing or processing operations within the province and must not have a corporate relationship with retail food store operations within the province.
Operation Details:
Food distributors volume purchase merchandise from producers, processors or suppliers and wholesale to unrelated companies in the retail food sector, as well as the HRI industry (hotel, restaurant and institutional). This industry includes "full-line" food distributors, specialty food distributors, small independent operators, as well as office coffee services and vending machines. In addition to food items, food distributors, due to the nature of their market, may also distribute a full range of food store products which include but is not limited to; housewares, cosmetics, health and beauty products, confectionaries, etc.
Food distributors generally operate from warehouse facilities and have extensive shipping and receiving operations, for breaking down incoming shipments and picking orders for delivery to customers. These companies may have trucking operations for both delivery into and out of the warehouse, or they may use common carriers for this purpose. Warehouse equipment will include forklifts, pallet jacks and conveyors.
This industry includes independent distributors of bakery, dairy, specialty meat and confectionery items; who sell either to retail outlets or through home delivery. The key is that goods are purchased, usually on a daily basis from the manufacturer, delivered and sold to customers. Such distributors usually have an assigned territory and unused stock is returned to the supplier.
This industry includes the sale of food products through vending machines to dispense food, drinks, confections, cigarettes and money. Employers will rent, lease and operate the vending machines and supply the product to be sold. Their primary revenue is from the distribution of the food-type product.
The provision of coffee services is an activity similar to that of vending. It may include wholesaling with warehousing as a supportive activity. Coffee equipment may be loaned or rented to clients. This equipment is maintained as part of the service provided.
Underwriting Considerations:
For inclusion in this industry, it is necessary to confirm that a business does not have a corporate relationship with retail food store operations in the province. If a corporate relationship does exist, the business would be classified in Retail Food Stores, industry 63100.
If a manufacturing business conducts a wholesale food distribution operation for the distribution of its' own manufactured/processed product, the distribution operations are incidental to the manufacturing operations and do not qualify for an additional industry under policy 07-01. Food manufacturers or processors, in addition to distributing their own manufactured product, may sell complimentary or related products purchased from other manufacturers (referred to as "flipped" product). In such cases all distribution operations would be classified in the manufacturing or processing industry.
Food distribution will include some repackaging operations and some incidental grading and sorting of fresh produce and fruit. Companies that specialize in the sale and distribution of vegetables requiring grading and packaging are classified in industry 13905.
As with restrictions on wholesaling with or without warehousing (industry 62900), food distribution includes out of province manufacturers that have in-province operations for distribution of their own products, whether such manufacturers operate their own warehouse or use public warehouses for physical distribution activities.
Public warehouses may handle storage and distribution of food products, and revenue is from the storage and distribution services rather than the sale of food products. Public warehouses are classified in industry 52700.
Liquor salesmen representing a manufacturer not in Alberta are classified in industry 89100, travelling sales and manufacturers' agents. If the manufacturer was manufacturing in Alberta, the liquor salesman would be classified in industry 14300, liquor and wine manufacturing.
Premium Rate History:
Activities:
Cigarettes - Wholesale Distribution
Coffee Services, Provision of
Coin Operated Food Vending Machines
Food Products, Wholesale Distribution
Liquor - Wholesale Distribution
Milk - sales and distribution
Vending Machines, Food, Operate and Service
Rate Group History:
Food distribution was placed into this rate group in 1993, recognizing more labor intense warehouse activities and more extensive delivery in comparison to other wholesaling activities in industry 62900.
Employers in this classification sell and distribute food, beverage, liquor and tobacco products, along with related merchandise on a wholesale basis to retail stores, hotels, restaurants and institutions. To be eligible for this industry, food distributors must be independent of manufacturing or processing operations within the province and must not have a corporate relationship with retail food store operations within the province.
Premium Rate History:
Activities:
Cigarettes - Wholesale Distribution
Coffee Services, Provision of
Coin Operated Food Vending Machines
Food Products, Wholesale Distribution
Liquor - Wholesale Distribution
Milk - sales and distribution
Vending Machines, Food, Operate and Service
Operation Details:
Food distributors volume purchase merchandise from producers, processors or suppliers and wholesale to unrelated companies in the retail food sector, as well as the HRI industry (hotel, restaurant and institutional). This industry includes "full-line" food distributors, specialty food distributors, small independent operators, as well as office coffee services and vending machines. In addition to food items, food distributors, due to the nature of their market, may also distribute a full range of food store products which include but is not limited to; housewares, cosmetics, health and beauty products, confectionaries, etc.
Food distributors generally operate from warehouse facilities and have extensive shipping and receiving operations, for breaking down incoming shipments and picking orders for delivery to customers. These companies may have trucking operations for both delivery into and out of the warehouse, or they may use common carriers for this purpose. Warehouse equipment will include forklifts, pallet jacks and conveyors.
This industry includes independent distributors of bakery, dairy, specialty meat and confectionery items; who sell either to retail outlets or through home delivery. The key is that goods are purchased, usually on a daily basis from the manufacturer, delivered and sold to customers. Such distributors usually have an assigned territory and unused stock is returned to the supplier.
This industry includes the sale of food products through vending machines to dispense food, drinks, confections, cigarettes and money. Employers will rent, lease and operate the vending machines and supply the product to be sold. Their primary revenue is from the distribution of the food-type product.
The provision of coffee services is an activity similar to that of vending. It may include wholesaling with warehousing as a supportive activity. Coffee equipment may be loaned or rented to clients. This equipment is maintained as part of the service provided.
Underwriting Considerations:
For inclusion in this industry, it is necessary to confirm that a business does not have a corporate relationship with retail food store operations in the province. If a corporate relationship does exist, the business would be classified in Retail Food Stores, industry 63100.
If a manufacturing business conducts a wholesale food distribution operation for the distribution of its' own manufactured/processed product, the distribution operations are incidental to the manufacturing operations and do not qualify for an additional industry under policy 07-01. Food manufacturers or processors, in addition to distributing their own manufactured product, may sell complimentary or related products purchased from other manufacturers (referred to as "flipped" product). In such cases all distribution operations would be classified in the manufacturing or processing industry.
Food distribution will include some repackaging operations and some incidental grading and sorting of fresh produce and fruit. Companies that specialize in the sale and distribution of vegetables requiring grading and packaging are classified in industry 13905.
As with restrictions on wholesaling with or without warehousing (industry 62900), food distribution includes out of province manufacturers that have in-province operations for distribution of their own products, whether such manufacturers operate their own warehouse or use public warehouses for physical distribution activities.
Public warehouses may handle storage and distribution of food products, and revenue is from the storage and distribution services rather than the sale of food products. Public warehouses are classified in industry 52700.
Liquor salesmen representing a manufacturer not in Alberta are classified in industry 89100, travelling sales and manufacturers' agents. If the manufacturer was manufacturing in Alberta, the liquor salesman would be classified in industry 14300, liquor and wine manufacturing.
Rate Group History:
Food distribution was placed into this rate group in 1993, recognizing more labor intense warehouse activities and more extensive delivery in comparison to other wholesaling activities in industry 62900.