EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

national mail order pharmacy operation, Meditrust Healthcare Inc., serving 18,000 lodge and
nursing home beds.
EB Identities: Rexall, PharmAssist, Medicine Shoppe, Pharma Plus
EB skus: N/A
Profile: The Katz Group has undergone a major strategic change in the past couple of years. Daryl
Katz, the son of a pharmacist, during the 1990s secured a franchise agreement with Medicine
Shoppe (owned by Cardinal Health of the US) and then began buying distressed pharmacies,
building up a network of more than 1,800 outlets, including rights to the Rexall brand in Canada
and Snyder’s Drug stores (25 company owned) in Minnesota. Failing to build that latter business
in the US market, Katz sold it to Walgreens in January 2010. The licensed Synder’s stores were
not affected. His interests then apparently switched more toward sports when he purchased the
Edmonton Oilers hockey team, which played in his Rexall Palace arena. Seeking to build a new
arena, Katz late January 2012 announced plans to sell his “non-core assets,” which included the
Drug Trading company chains and the franchised Medicine Shoppes business to McKesson (listed
in this database), the US pharmaceutical distributor for those business. McKesson agreed to pay
$920 million cash and also to continue to sell the Rexall brand line in its acquired assets. Katz
meantime has put more support behind its Rexall stores, which stock some 1,300 Rexall brand
products. He recently acquired an 18-store Dell Pharmacy chain in Canada for $70 million, which
will likely will be converted to the Rexall banner.
UPDATE: In January 2013, Rexall introduced a new healthy brand identity: "Be.better." made
available in 426 Rexall and Rexall Pharma Plus corporate stores located across central and western
Canada. The selection includes: gluten-free vitamins, environmentally friendly household
cleaners, salon-quality personal and beauty care items, healthy foods and snacks, and vegetarian
probiotics. The Be.better brand joins another newcomer at Rexall: KIT nail lacquers (40 choices)
and jewelry. Another relatively new private brand sold at select Rexall Pharma Plus stores:
Creation's Garden, a range of natural products, covering personal care items for the body, face,
hair, and including anti-aging and wrinkle-reduction products. These three brands complement the
iconic Rexall Brand, representing mostly familiar health and beauty care products (OTC items,
diapers, feminine hygiene, shaving, etc.) in some 20 categories.
Procurement Contacts: Daryl Katz, Chairman & CEO
KESKO LTD.
Satamakatu 3, P.O.B. 135, FIN-00016, Helsinki, FINLAND
Tel: +358 10-5311
Fax: +358 9 655-473
www.kesko.fi