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country. The chains, some of which include a mail order pharmacy business, include:<br />

Lloydspharmacy in the UK ( £1.8 billion 2010 turnover), Unicarepharmacy in Ireland, Farmacia in<br />

Italy, Vitus apotek in Norway, etc. Celesio’s wholesale business operates through 133 wholesale<br />

branches, which supply more than 65,000 pharmacies and hospitals in 13 European countries.<br />

Celesio works with 4,500+ brand partnerships, which include: DocMorris, Movianto, Pharmexx,<br />

etc. They can draw on a stock of up to 130,000 products. The Celesio Manufacturing Solutions<br />

portion of its operation is basically a manufacturer of generic drugs and other products, also<br />

providing logistics and marketing support.<br />

EB Identities: Lloydspharmacy, Solero (sun care range in the UK), Your Organ ics (skincare),<br />

DocMorris<br />

EB skus: N/A<br />

Profile: From 2007 to 2011, one positive trend for Celesio has been the reduction of its net debt,<br />

down by 27%. The company has suffered earnings losses over those years; 2011 was especially<br />

difficult: net profits at € 6.1 million versus 2010’s € 265 million. Blame it on the economy and<br />

particularly on stiff competition in Germany and France. Given the gloomy forecasts in Europe,<br />

Celesio, which added 49 new pharmacies during 2011 (mostly in the UK), is now looking toward<br />

regional expansion into Latin America and the Middle East. The weak profits in 2011 led Celesio<br />

to a number of divestments in 2012: Movianto (third party logistics) in July, Pharmexx (a<br />

marketing and sales serice provider) in July, its Czech retail and wholesale business in August, its<br />

local wholeale business in Ireland (October), and in October the DocMorris pharmacy mail order<br />

business and its trademark to Zur Rose AG, a pharmacy distributor in Switzerland. In October<br />

2011, the company acquired 60% interest in Oncoprod, a wholesaler of specialty pharmaceuticals<br />

in Brazil. Celesio had planned to bundle its operations into a European network of DocMorris<br />

pharmacies to realize synergies. Opposition, however, came from independent pharmacies in<br />

Germany (served by Celesio wholesale) resisting the prospect of a new chain competitor. Celesio<br />

nevertheless now looks to build that network under the ‘One Celesio’ banner, now that DocMorris<br />

is sold.<br />

Procurement Contacts: N/A<br />

CENTRAL GROCERS COOPERATIVE, INC.<br />

2600 W. Haven Ave, Joliet. IL 60433 USA<br />

Tel: (815) 553-8800<br />

Fax: (815) 553-8710<br />

www.central-grocers.com<br />

Total Fiscal 2010 Sales: $1.8 Billion +12.5%

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