The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: John Edward Heinbockel - Guggenheim Securities, LLC, Research Division - Analyst
: Steve, I want to drill down on the $38 billion opportunity with existing customers. So I know it's probably a broad range. But when you think about
your average share of wallet, right, maybe some color on that and how that might differ by channel, right, chain, independent, et cetera? And what
you think the friction points are to picking up more of that $38 billion? Why is that not happening? And then lastly, if you think about the incremental
margin on that, right, the drop size goes up. Would the incremental profit margin be 50 basis points higher on that revenue? What's the thought
there?
Question: John Edward Heinbockel - Guggenheim Securities, LLC, Research Division - Analyst
: Just through existing customers. Yes.
Question: John Edward Heinbockel - Guggenheim Securities, LLC, Research Division - Analyst
: Well, yes. So just 2 nice things. It would sound like based on what your existing business is that your -- probably this is wrong, that your share of
wallet with those existing customers is probably maybe 1/3 or something like that, certainly under 50%, well under 50%. Is that fair?
And then secondly, your cross-sell, the $60 million. I would assume that's going to ramp during the course of the year. So would you think the
cross-sell opportunity is $300 million to $400 million? Was it that high for the year this year?
|
