Welcome

While there are a number of ways to grow consumer product sales, companies are reinventing their go-to-market approach. There is consolidation of brands or penetrating new sales channels. Many are doing both. If you are looking for a game changer, insight into the $21B military resale channel can create it but to succeed you need industry experience, and transformative choices. If you have a military resale strategy that needs to be reviewed or you are looking to develop one, sharpen the sword and find your competitive edge necessary to drive your business forward. With distribution serving 49 states, 2 U.S. Territories, 30 countries and 11.6 million Patrons World-Wide make a strategic move by calling me, John Shelley, Managing Principal of Gateway Military in St. Louis at 636-594-2345

Our WHY…

E.T. Reim and W.G. Shelley

Many of us have family members or know of those who serve and fight for our freedoms. Gateway Military is a company made up of civilians, veterans, and family members of those who are serving or have served in the military. Throughout history the troops that defend our freedom have represented a very small percentage of the population but all of them fight the battles that keep us free. My father and uncles served in the armed forces during WWII, Korea and Vietnam. Understanding their commitment to serve their country has always been an inspiration to me. The idea to start Gateway Military in 2006 began with the Patron in mind – it is a way for us to serve the military and give back. Every day throughout the organization, we focus on the “Why”. Why does Gateway do what it does? To answer the “Why” it starts with “What” and “How” we do it. “What” we do as a government contractor is supply and market consumer brands to the military resale channel of trade. “How” we do it is through the management of global resources and relationships to bring brand name products straight from the Manufacturer to the Patron: in-store or on-line. But most important, WHY do we do this? To provide the Patron with the products they want when they want them at a savings over retail. That is how we support them.

Military Channels

GROCERY

The grocery store on any military base is a Commissary. The congressionally funded organization that oversees the operation of all military Commissaries worldwide is the Defense Commissary Agency or DeCA for short. DeCA sells food, tobacco, health and beauty aids and some household items, such as paper towels and batteries just like any supermarket chain in America. To put DeCA in perspective, the FMI listing of America’s Largest Supermarket Chains ranks DeCA in the TOP 15 of all U.S. Grocery Retailers. Merchandise is sold at cost plus 5% surcharge applied at the register, providing the patrons a savings of up to 30% over civilian retail. There are over 250 +/- Commissaries worldwide and they generate sales of more than $5.5 billion on an annual basis. With multiple government contracts, ten distribution centers and boots on the ground worldwide, Gateway Military has the reach of every DeCA Commissary in their system.

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C-STORE

The convenience store (C-Store) on a military base is under the direction of its affiliated service Exchange Service. For example, the Army Air Force Exchange Service (AAFES) operates hundreds of outlets throughout the world with the primary designation of Express Stores. In all branches of service, these C-Stores behave similar to the C-store located on the Corner of 5th & Main in your town! Dry, frozen, and chilled groceries are offered for sale but the fastest growing area are food service items that can be grabbed on the go and consumed at the dash board of the vehicle in 7 mins or less. Gateway Military’s low temp convenience supply chain opens up the door to over 250 new points of distribution in this segment alone. If you are not in this segment now, and have a qualifying product, give us a call!

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MASS

Military exchanges operate as federal entities within the Department of Defense. They are self-funded and pay operating costs from revenues. The Army Air Force Exchange Service (AAFES) is the largest entity, followed by The Navy Exchange (Nexcom), the Marine Exchange (MCX) and the Coast Guard Exchange Service (CGES). Exchange sales total more than $14 billion with roughly 350 stores worldwide. Exchanges are similar to a mass retailer without the groceries. Think electronics, jewelry, automotive and clothing in these stores. Gateway Military has the relationships with all Exchange Headquarters and depending on the consumer product, Gateway has multiple distribution methods to all points of sale.

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eCOMMERCE

Many manufacturers are still playing catch–up with the retail OMNI-CHANNEL movement. Retailers are racing to get eCommerce up and running because they know at times over the past few years; online sales have outpaced in-store purchases. eCommerce is one of the fastest growing initiatives in the military resale channel. The military has their own site similar to Amazon, giving military men and women the exclusive ability to purchase anything from furniture to food as well as electronics to beauty care. The push of eCommerce is altering the face of home delivery and is now taking shape in the military. The military Patron can now order on-line and have delivered to them, their name brand product with just a few clicks of the mouse. Gateway Military is taking the traditionally fragmented segment of the logistic supply-chain and making it act and respond like a deeply integrated whole for the military retailer. Gateway Military’s supply-chain is at the forefront of fulfilling online orders for Food (Dry, Chilled, Frozen), HBC and General Merchandise through delivery to the Patron’s home. The points of distribution are endless!

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PRIVATE LABEL

Significant funding reductions by the Department of Defense [DoD] has led to a transformation that is currently reshaping the military grocery business. A part of this transformation is the introduction of Private Label products, which is an opportunity to offset these funding reductions and to provide the Patrons with alternative product choices. This provides private label manufacturers an immediate opportunity to do new, incremental business with the government, an opportunity that has not existed until now. Navigating these waters will take some insights. Gateway Military helps manufacturers’ move through government contracting all the way to the shelf. Your products; our military knowledge and experience. For more information, give us a call.

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