December 10, 2004

BEKA won't sell to Big Boxes

beka blocks.JPGBusinesspundit links to a Businessweek article examining why the small business art supply and wooden toymaker BEKA refuses to sell to big box stores:

BEKA, a St. Paul (Minn.)-based independent toymaker specializing in wooden blocks and art supplies, is dealing with the same issues as its retailer customers -- and many of the same fears. With the increasing clout of big-box stores, BEKA President Jamie Kreisman says diversifying the product line and staying loyal to the specialty market are his key defenses....

Q: Have you ever considered selling to Wal-Mart or another big-box retailer?
A: For me personally, it would take changing the way we operate. The mid-tier market provided a large volume for some manufactures, and now they've turned to Wal-Mart now that the middle tier is disappearing.

Remember that the current wisdom is that supplying WM can destroy a company, like Vlasic.

Posted by Kevin on December, 10 2004 at 12:47 PM