Day 062 - 06 Dec 94 - Page 50


     
     1
     2   Q.   Perseco Europe, it has to be called something, and you
     3        happen to have called it Perseco Europe, but it does all
     4        that which can conveniently be managed from your office in
     5        the United Kingdom, rather than in Illinois or Singapore?
     6        A.  Yes.
     7
     8   MR. MORRIS:  So, for example, your chart which was 7.3, just as
     9        an example, this has suppliers in -----
    10        A.  Distribution centres.
    11
    12   Q.   Sorry, distribution centres in about 12 countries?
    13        A.  Yes.
    14
    15   Q.   You have named some other countries that they also supply
    16        some materials to?
    17        A.  Yes.
    18
    19   Q.   But, presumably, there are suppliers in Iceland and in
    20        Russia, East Europe, Morocco?
    21        A.  How it mainly starts is that if a new country is
    22        developed, it will first of all be supplied from one of the
    23        already existing larger distribution centre.  For instance,
    24        if a new restaurant or a new country is actually opened,
    25        the first restaurant is in a new country, in Eastern
    26        Europe, it will be supplied from WLS which is located in
    27        Germany.  Then once there is enough restaurants in a
    28        country to actually sustain a distribution centre, they
    29        will set up a distribution centre.  For instance, on this
    30        graph you will not find a distribution centre for Italy.
    31        Recently we do have a distribution centre for Italy but in
    32        1992 we did not.
    33
    34        So, if this specific country is not here -- Reykjavik, for
    35        instance, has been begun to be delivered from Golden West
    36        Foods, the distribution centre who is responsible for the
    37        UK.  That is purely as a matter of convenience, economics.
    38        You start out from one of the established distribution
    39        centres and later on it will actually split out.
    40
    41   MS. STEEL:  So in 1992 ---
    42        A.  Yes.
    43
    44   Q.   -- say in Morocco or something, would they get all their
    45        packaging from a European company?
    46        A.  There was not a restaurant in Morocco in 1992.  I think
    47        they opened in 1993.
    48
    49   Q.   Right.  Say one of the ones in -----
    50        A.  Eastern European, the Czech Republic? 
    51 
    52   Q.   Yes.  Would they get all their packaging from the ones, 
    53        kind of, in Western Europe?
    54        A.  Mostly, yes, unless they could set up a local supplier,
    55        then sometimes in the beginning there would be direct
    56        delivery, something like that, but major items, yes, that
    57        is how it went.
    58
    59   MR. MORRIS:  If we could look at 7.1, the last paragraph on 7.1,
    60        it says:  "These DCs waste treated as if they served 100

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