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DALLAS - Fleming said it received a letter from Solo Cup Company in response to a story in Thursday morning's edition of the Wall Street Journal, which reported that some of Fleming's vendors, including Solo Cup Company, have complained about excessive charges related to the Kmart deal and other Fleming initiatives. Solo said the story had inaccuracies and maintained that it has resolved any disputes with Fleming.
The letter said: "We are disappointed by the inaccuracies relating to statements regarding our company's relationship with Fleming. While Solo and Fleming have issues from time to time, they get resolved in the course of normal negotiations. We do not have any open deductions that have not been resolved with regard to our mutual business with Kmart."
In other news, Fleming announced that it has gained nearly 100 new customers who were formerly served by C.B. Ragland, a Nashville area distributor who recently said that it would cease operations. The stores are being transitioned currently, and will be served by Fleming by Oct. 5, according to Fleming. Fleming said it expects total sales from these customers to be approximately $100 million annually.
Fleming also said it learned on Thursday afternoon that Salt Lake City-based retailer Harmons plans to move a substantial portion of its distribution business to a cooperatively-owned wholesaler, also based in Salt Lake City. Fleming will retain the secondary supply business for this 10-store chain. That business is anticipated to transition in the next 90 days.