Lil' Drug Store Products

What Lil' Drug Store Products does

Lil' Drug Store Products, Inc. (LDSP) is a privately held, family-owned consumer goods distribution and marketing company headquartered in Cedar Rapids, Iowa. Founded in 1974 as XL-800 Distributing Company and renamed in 1978, the company operates as the recognized #1 health and beauty care (HBC) supplier to the U.S. convenience store channel, reaching more than 180,000 retail locations across convenience, travel, hospitality, and alternative retail channels. It was purchased by Chris and Suzy DeWolf in 2005, and under their leadership revenue grew from $25 million in 2000 to more than $500 million in annual retail sales. LDSP maintains a board structure combining family ownership with corporate discipline, with six of eight board seats held by independent directors, and was recognized as a 2024 US Best Managed Company by Deloitte Private and The Wall Street Journal.

The company's core offering is organized into three integrated service lines: (1) single-source distribution from its Cedar Rapids, Iowa distribution center plus a Glendale Heights, Illinois operations support facility acquired through Convenience Valet; (2) category management services covering 45,000+ c-store, casino, airport, and hotel locations, supported by a proprietary national retail database combined with syndicated data and customer scan data; and (3) exclusive brand partnership representation for leading CPG companies including Procter & Gamble, Alcon, Carmex, ChapStick, Ricola, Rolaids, LifeStyles/SKYN, Cadence OTC, Cheers Health, OLLY, Sanofi brands, and others. Its product portfolio spans OTC medications (trial-pack and full-size), private-label HBC products under the Lil' Drug Store Value Line, the Lil' Auto Store automotive line, the Wavelength cellular accessories and Images sunglasses brands (acquired via Associated Distributors), NoDoz alertness aids (owned since 2017), and better-for-you snacks.

LDSP generates revenue through product margin on distribution, brand partnership fees (exclusivity arrangements, marketing fees, margin sharing with brand partners), and category management professional services. Its go-to-market relies on a multi-layer B2B channel comprising direct relationships with national c-store wholesalers (McLane, Core-Mark, H.T. Hackney, S. Abraham and Sons, Eby Brown, Amcon, Chambers and Owens), regional brokers (Universal Sales and Marketing, Matrix Brokerage, Mueller Yurgae Associates), regional sales managers, direct store service representatives, and direct accounts with major retail chains (7-Eleven, Circle K, Wawa, Sheetz, Maverik, RaceTrac, Casey's, Murphy USA, Kum & Go, Hudson News, Marriott). Customer-reported outcomes include +37% annual sales growth at RaceTrac and 5x industry-average HBC category growth at Kum & Go.

Name

Lil' Drug Store Products

Legal name

Lil' Drug Store Products, Inc.

Website

http://lildrugstore.com

Company type

Private

Founded year

1974

Operating status

Operating

Headcount range

101–250 employees

Short description

Lil' Drug Store Products is a privately held, family-owned consumer goods distribution and marketing company serving as the #1 health and beauty care supplier to the U.S. convenience store channel, reaching 180,000+ retail locations across convenience, travel, hospitality, and alternative channels through exclusive brand partnerships and category management services.

Ownership category

akta.pro rank

Product category

Consumer Health Products Distribution

NAICS

Drugs and Druggists' Sundries Merchant Wholesalers (424210), Drugs and Druggists' Sundries Merchant Wholesalers (42421), Pharmacies and Drug Retailers (45611), Food (Health) Supplement Retailers (456191)

SIC

Wholesale-Drugs, Proprietaries & Druggists' Sundries (5122), Retail-Convenience Stores (5412)

akta.pro primary industry

Pharmacy Front-End & Sundries Distribution (Health & Wellness, Personal Care, Convenience) (CRAOAHAG)

akta.pro secondary industry

Discount Drugstores with Convenience Food & Beverage (Value C-Store Hybrid) (CRAEAHAJ)

Keywords

• Convenience store distribution
• Health and beauty products
• Category management services
• Brand partnership distribution
• OTC medications wholesale

Headquarters

HQ city

Cedar Rapids

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Product Distribution: Distribution of health and beauty care products, automotive supplies, cellular accessories, sunglasses, and better-for-you snacks to convenience stores, travel, hospitality, and alternative retail channels. Revenue generated through product margin and distribution fees from brand partners and retailers.
2. Brand Partnership Services: Marketing and distribution services for brand partners seeking convenience channel access. Revenue derived from exclusivity arrangements, marketing fees, and product margin sharing with brands like Procter & Gamble, Sanofi, Alcon, and others.
3. Category Management Services: Best-in-class category management solutions for convenience retailers and wholesalers, including business reviews, trend analysis, assortment recommendations, and merchandising support.

Go-to-market motion1 record

Distribution channels5 records

Marketing channels4 records

Core offering

Lil' Drug Store Products is a B2B distributor and category management service provider that distributes health and beauty care (HBC) products, OTC medications, automotive supplies, cellular accessories, sunglasses, and better-for-you snacks to convenience, travel, hospitality, and alternative retail channels. The company offers exclusive brand partnerships with leading CPG brands and data-driven category management services to optimize product assortment, pricing, and merchandising for retailers and wholesalers.

Product overview

Lil' Drug Store Products is a distribution and marketing company serving the convenience, travel, hospitality, and alternative retail channels. The company operates three core service divisions: Distribution (single-source supply from Cedar Rapids, Iowa warehouse to 180,000+ retail locations), Category Management (serving 45,000+ c-store, casino, airport, and hotel locations), and Brand Partnerships (exclusive distribution for consumer brands). The product portfolio spans multiple categories: Health & Beauty Care (HBC) as the core offering including trial pack OTC medications, private label Lil' Drug Store Value Line, Lil' Auto Store automotive supplies, Wavelength cellular accessories, Images sunglasses, and exclusive distribution partnerships with major brands including Alcon eye care, Cadence OTC emergency contraception, Carmex, ChapStick, Cheers health products, LifeStyles/SKYN sexual wellness, NoDoz alertness aids, OLLY supplements, Ricola cough drops, and Rolaids antacids. The company also distributes better-for-you snacks through partnerships with Harvest Snaps, Popchips, Sensible Foods, and Sun-Maid.

Differentiator

Problem solved

Functional benefit

Brands

• Lil' Drug Store Value Line: Private label over-the-counter (OTC) medications and health and beauty care products value priced with same active ingredients as leading brands
• Lil' Auto Store
• Associated Distributors (Images/Wavelength brands)

Products and services

• Health & Beauty Care (HBC) Products

Quantifiable outcome

• Convenience store retailers grew sales an average of +37% annually through RaceTrac partnership
• +3 more outcomes

Named customers13 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

21 partnerships are on record, tiered flagship, core and minor.

• Procter & Gamble (P&G)flagshipChannel Partner/ Reseller/ Distributor · 20 July 2024Lil' Drug Store Products became the primary distributor of Procter & Gamble's top personal healthcare products to the convenience channel, building on the existing Rolaids partnership. The partnership began September 3, 2024, and enables enhanced collaboration with retail partners through LDSP's sales, broker, and category management teams.
• Cadence OTCcoreChannel Partner/ Reseller/ Distributor · 1 January 2024Exclusive distribution partnership for Morning After Pill (emergency contraceptive) in the convenience channel. Makes high-quality EC available to over 180,000 retail locations and addresses 8,000 contraceptive deserts. Partnership aligns with c-stores' role in healthcare access in underserved communities.
• Cheers HealthcoreChannel Partner/ Reseller/ Distributor · 20 November 2023Exclusive distribution partnership to introduce Cheers' alcohol-related health and wellness products (Cheers Restore and Cheers Relief) to the convenience, travel, and hospitality channels. Promotes smarter drinking habits for on-the-go consumers.
• ChapStickcoreChannel Partner/ Reseller/ Distributor · 1 January 2023Primary distributor of ChapStick (#1 lip care brand) to the convenience channel. Products drive incremental sales growth to Lip Care category and meet convenience shoppers' need for trusted lip care solutions.
• OLLYminorChannel Partner/ Reseller/ Distributor · 1 January 2023Partnership to bring OLLY's sleep, stress, and immunity support supplements to the convenience channel. Products include OLLY Sleep, Goodbye Stress, and Active Immunity gummy supplements in travel-friendly sizes.
• LifeStyles HealthcarecoreChannel Partner/ Reseller/ Distributor · 11 October 2022Exclusive distributor and marketer of LifeStyles Healthcare brands including SKYN® (world's #1 non-latex condoms), LifeStyles® branded latex condoms, personal lubricants, and devices to the convenience channel. Partnership energizes the growing sexual wellness category.
• Convenience ValetcoreStrategic or Co-development Partner · 25 August 2020Acquired Mechanical Servants LLC (dba Convenience Valet), the leading provider of HBC products to the travel & hospitality channel. Combined entity serves 150,000+ retail locations and brings brands like Renu, Nicorette, and Nice 'n Clean to convenience and travel channels.
• Sun-MaidminorChannel Partner/ Reseller/ Distributor · 5 August 2019Exclusive marketer of Sun-Maid brand in the convenience channel. Initial products include Sour Raisin Snacks and Yogurt Flavored Raisins. Sun-Maid is the category leader in Dried Fruit and iconic U.S. food brand.
• Associated DistributorscoreStrategic or Co-development Partner · 7 January 2019Partnership with Associated Distributors (acquired by Linden Holdings, member of LDSP family) for Images brand sunglasses and Wavelength brand cellular accessories. Associated Distributors serves 4,000+ convenience stores with direct store merchandising.
• Sanofi BrandscoreChannel Partner/ Reseller/ Distributor · 1 May 2018Expanded portfolio of Sanofi brands including Rolaids, Allegra, Zantac, Dulcolax, Cortizone, Gold Bond, and Unisom. Totaled over $50 million in retail sales in the convenience channel in 2017. Sanofi brands first partnered with LDSP in 2013.
• NicotacminorChannel Partner/ Reseller/ Distributor · 2 April 2018Exclusive convenience channel marketer for Nicotac brand nicotine gum (2MG and 4MG strengths) to help adult smokers quit. Launched May 2018 at approximately 150,000 convenience stores.
• NoDozminorChannel Partner/ Reseller/ Distributor · 1 June 2017Acquired NoDoz brand in June 2017 and re-launched in convenience stores November 2017. NoDoz is the most recognized brand in the alertness aid category with strong consumer recognition.
• PopchipsminorChannel Partner/ Reseller/ Distributor · 8 May 2017Exclusive convenience channel marketer of Popchips better-for-you snacks. Partnership addresses growing demand for healthy snacks in c-stores.
• Calbee Harvest SnapscoreChannel Partner/ Reseller/ Distributor · 27 June 2016Exclusive partnership in the convenience channel for Harvest Snaps healthy snack line. Partnership expanded convenience store availability of the brand (over $100 million in retail sales) in multiple flavors.
• AlconcoreChannel Partner/ Reseller/ Distributor · 25 April 2016Exclusive supplier of Alcon's leading eye care brands including Opti-Free® PureMoist® contact lens solution (#1 brand) and Systane® Ultra dry eye drops (#1 brand) to the convenience channel. Products now available in over 40,000 convenience stores.
• Rolaids (Sanofi/Church & Dwight)coreChannel Partner/ Reseller/ Distributor · 1 January 2013Primary distributor of Rolaids to the convenience channel since 2013, re-launching the brand in c-stores. In 2024, with P&G's acquisition of Rolaids, LDSP continues as primary distributor. Rolaids available in over 150,000 c-store locations with top performing items in antacids category.
• RicolacoreChannel Partner/ Reseller/ Distributor · 1 January 2009Exclusive distribution partnership for Ricola natural cough drops in the convenience channel since 2009. Ricola is now the #1 brand of natural cough drops in convenience stores, available in over 74,000 locations with double-digit growth over 3 years.
• CarmexcoreChannel Partner/ Reseller/ Distributor · 1 January 2007Exclusive distributor of Carmex lip balm to convenience stores since 2007. Brand has grown to over 100,000 convenience stores and become the fastest growing lip treatment brand in c-stores.
• McLanecoreChannel Partner/ Reseller/ DistributorMajor national convenience channel wholesaler partner for distribution of HBC and general merchandise products.
• Core-MarkcoreChannel Partner/ Reseller/ DistributorMajor national convenience wholesaler partner. Core-Mark Curated recognized Cheers brand in 2023 NACS Cool New Products Showcase.
• H.T. HackneycoreChannel Partner/ Reseller/ DistributorNational convenience channel wholesaler partner serving retailers across the country.

Scale indicators10 records

Recent moves9 records

Expansion highlights5 records

Broad incumbents

• McKesson: McKesson is one of the largest pharmaceutical and health-products wholesalers in North America. It operates at much larger scale but in a closely adjacent business of distributing drugs and druggists' sundries to retail and institutional buyers, making it a relevant incumbent comparable for LDSP's HBC wholesale activities.
• McLane Company: McLane is a major national convenience-channel wholesaler and one of LDSP's largest distribution partners. Both operate in the same supply chain that delivers consumer goods to c-store retailers, and McLane also sells direct to c-stores, making it the closest comparable distribution platform at scale.
• Cardinal Health: Cardinal Health is a major U.S. distributor of pharmaceuticals and consumer health products. Its pharmaceutical and retail/health product distribution overlaps with LDSP's HBC distribution model and customer types (pharmacies, retailers).
• Core-Mark International: Core-Mark is a national c-store wholesaler and a named distribution partner of LDSP. While primarily a wholesale distributor, it competes in the same end-customer set (7-Eleven, Circle K, etc.) and shares the multi-channel c-store/travel-retail distribution model.
• H.T. Hackney: H.T. Hackney is a national convenience/wholesale distributor partnered with LDSP. It serves the same c-store retail base across multiple geographies and represents a comparable wholesale distribution model serving the same end customer.
• Eby-Brown: Eby-Brown is a national convenience wholesaler partnered with LDSP. It is a regional-to-national c-store wholesaler serving the same customer base, with overlapping distribution and category-management positioning.
• AmerisourceBergen (Cencora): Cencora (formerly AmerisourceBergen) is one of the largest drug wholesalers globally. Its pharmaceutical distribution business shares the structural characteristics of LDSP's HBC distribution segment and serves overlapping downstream channels.

Others

• Paradies Lagardère: Paradies Lagardère is a large travel-retail operator and a customer of LDSP in airports. It is comparable as a travel/hospitality channel counterpart on the retail side of LDSP's distribution business.

Direct peers

• Convenience Valet (Mechanical Servants): Convenience Valet was the leading provider of HBC products to the travel and hospitality channel before being acquired by LDSP in 2020. Now part of LDSP, it remains directly comparable as the HBC travel/hospitality channel specialist.
• Associated Distributors: Associated Distributors was acquired by LDSP in 2019 and is now an LDSP subsidiary distributing Images sunglasses and Wavelength cellular accessories through c-store wholesalers. It is a direct, in-family comparable for the convenience-channel specialty distribution model.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/lil'-drug-store-products

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lil' Drug Store Products