ecFood, a pioneer in strategic sourcing solutions for the food and beverage industry, announced today that it completed $100 million in online transactions in the second quarter of 2001. This mid-year milestone translates into a 65 percent revenue increase from the first quarter of 2001 and conforms to the company’s pattern of measured and steady revenue growth since its founding in 1998. This recent increase in revenue was boosted by the addition of several major customers, which accounted for 46 percent of the company’s transaction revenue during the second quarter, and by the company’s team-purchasing program.
“ecFood has been successful in retaining and attracting new customers because we deliver significant savings on food ingredients and indirect materials costs,” said Dave Laukat, CEO of ecFood. “Customer retention has been a major factor in our record breaking revenue increase. ecFood is a solid performer and our operations are continually being updated to provide flexible and streamlined services for our customers.”
ecFood currently provides online transaction services to over 40 industry leaders from several segments of the food industry. These segments include major consumer brand manufacturers, processing manufacturers, bakeries, dairies, foodservice, retailers, cooperatives and buying groups. These customers have effectively adapted ecFood’s online and off-line sourcing services to meet a variety of purchasing challenges. The services offered by ecFood include demand aggregation, team-purchasing program, specification management, auctions, RFP and RFQ.
Many of ecFood’s customers are specifically attracted to ecFood’s innovative team-purchasing program. The program enables several buyers to combine their purchasing power to buy specific items. The team-purchasing program is also appealing to suppliers because they can expand their customer base while conducting a single transaction.
In addition to an increase in its customer base, ecFood has furthered broadened the types of items that are sourced by its customers. Food ingredients such as cheese, olive oil, orange concentrate, sweeteners, eggs, and tomato paste continue to be primary auction items, but companies have increased their use of ecFood’s capabilities to source indirect materials such as fuels and transportation. There has also been significant movement in the sourcing of packaging items including stretch wrap, milk cartons, pallets and corrugated.
Contact: Rafael Molano, Vice President of Marketing
ecFood is a pioneer in bringing web-enabled sourcing software tools and services to the industrial food sector. Founded in 1998 and headquartered in Santa Clara, California, ecFood combines substantial food and beverage industry knowledge with advanced e-commerce technology. We provide online methods that reflect real world purchasing practices. ecSourcing, our suite of sourcing and bidding solutions, takes the “best practices” of the industrial purchasing system and blends them with the inherent efficiencies and savings of the new economy. ecFood is a privately held company which has received funding from Redleaf Group (www.redleaf.com) and Swander Pace Capital (www.spcap.com). For more information, visit www.ecFood.com or call 408.566-6130.