The Top Five Continue to Thrive

Creative Product Diversification Propels TST/Impreso

TST/Impreso, Coppell, Texas, reported a reduction in sales of more than $8 million, but the company still managed to hold on to the No. 4 spot again this year. The company also reported five fewer locations and 73 fewer employees, no doubt resulting from the reconfiguration of operating facilities for greater cost efficiency.

"In the stock tab-paper converting segment of our business, we have experienced some significant customer losses with the increasingly competitive atmosphere of this mature and declining portion of our sales," said Marshall Sorokwasz, company president and CEO. "Subsequent to fiscal year end 2004, purchases by our largest customer decreased significantly. That reduction in purchases is expected to be equivalent to approximately $20 million in annual sales."

After the company's annual board meeting, which was held in January 2004, TST/Impreso announ-

ced that it was entering the bottled spring water business, which has experienced phenomenal growth in the past few years. The company agreed to lease the water production and a building that houses the spring from Alexa Springs, and then submitted orders to manufacturers for the water processing equipment.

"Looking forward to fiscal year 2005, I am very excited about the start of production at our water bottling facility in the Ouachita Mountains near Mt. Ida, Ark.," commented Sorokwasz. "This is especially significant as we begin the diversification of our product offerings out of hard-copy imaging supplies."

He also pointed out that the introduction of bottled water into TST/Impreso's paper business makes for an ideal companion sale, since the distribution model for the water products is very similar to that of hard-copy imaging products.

"Many customers who are currently purchasing from us also buy bottled water. The weight and dimensions of a pallet of bottled water and paper, and therefore the costs, are comparable," observed Sorokwasz. "Since we are already delivering our customers the paper products that they require, we can simply piggyback a second sale of water on the same truck. We plan to effectively compete in the wholesale market by offering a quality product at a competitive price point," he concluded.