ReposiTrak Welcomes a Leading Distributor to Rapidly Expanding Food Traceability Network

Rhea-AI Summary

ReposiTrak (NYSE: TRAK) has announced the inclusion of a major distributor to its rapidly expanding ReposiTrak Traceability Network (RTN). This addition will bring over 6,500 retail stores, 6,000 suppliers, and more than a dozen distribution centers into the network. The distributor will use RTN to meet FDA's Key Data Elements (KDEs) requirements ahead of the January 2026 deadline. Suppliers will share these KDEs with the distributor and other customers. ReposiTrak's platform is scalable, allowing businesses of any size to join. Retailers and wholesalers can access the network for free, while suppliers pay a small fee per facility.

Positive

• Addition of a major distributor nearly doubles the size of the ReposiTrak Traceability Network.
• Over 6,500 retail stores and 6,000 suppliers join the network, expanding its reach.
• Scalable platform designed to accommodate companies of any size.
• RTN is free for retailers and wholesalers, reducing access barriers.
• Suppliers have the ability to share KDEs with multiple customers efficiently.

Negative

• Suppliers incur a per-facility fee to connect to the network.
• Mandatory compliance with FDA's Key Data Elements (KDEs) requirements may impose additional operational burdens on suppliers.

Market Research Analyst

ReposiTrak’s expansion by adding a major distributor significantly boosts its market presence. The network now includes over 6,500 retail stores and more than 6,000 suppliers. This exponential growth showcases ReposiTrak’s ability to attract key players in the food distribution industry.

Given the upcoming FDA regulations on food traceability, joining a well-established network like RTN can streamline compliance for the distributor and its suppliers. This compliance-related pressure is a critical driver for RTN’s growth and acceptance.

Additionally, the promise of no additional hardware or software requirements simplifies adoption, making it more appealing. In the short-term, this expansion should enhance ReposiTrak’s revenue streams as more suppliers join the network. In the long-term, the robust network might become indispensable for compliance, elevating ReposiTrak's market position.

Considering the industry average for such platforms, the nominal fee for suppliers appears to be a competitive strategy. It creates a low entry barrier while ensuring broad participation, which is critical for network effectiveness and value delivery.

Financial Analyst

From a financial perspective, the addition of this significant distributor is positive for ReposiTrak. The near doubling of their network size can lead to increased recurring revenue from supplier fees. Because the service is free for retailers and wholesalers, the primary revenue will be from suppliers paying to connect their facilities. Given the scale, even a small fee per facility could translate into substantial annual revenue.

Moreover, the scalability of ReposiTrak's platform without the need for additional hardware or software investments points to cost-effective growth. The ability to integrate new members seamlessly can keep operational costs relatively low, thereby potentially increasing margins.

Additionally, anticipating the 2026 FDA deadline, early mover advantage might bring more suppliers into the network ahead of competitors, solidifying RTN’s market position and likely leading to a sustained increase in revenue over time.

Legal Expert

From a regulatory standpoint, the addition of this distributor to ReposiTrak’s network is strategically sound. The 2026 FDA deadline for traceability compliance will require extensive data management and RTN’s platform appears well-equipped to handle this. The KDEs (Key Data Elements) requirement means suppliers will need detailed, accurate records for compliance and RTN simplifies this process.

Legally, being part of a large, compliant network can reduce the risk of non-compliance penalties for suppliers and distributors, which can be quite expensive. The ReposiTrak Network providing seamless data exchange could alleviate many compliance burdens, making it an attractive option for companies needing to align with FSMA 204 food traceability law.

In summary, the expansion is a important step for bolstering compliance frameworks, ensuring that ReposiTrak and its members are well-prepared for upcoming regulatory changes.

The world’s largest and fastest-growing traceability network adds more than 6,500 retail stores, 6,000 suppliers and more than a dozen distribution centers with newest member

SALT LAKE CITY--(BUSINESS WIRE)-- ReposiTrak (NYSE: TRAK), the world's leader in food traceability and regulatory compliance, leveraging its comprehensive inventory management and out-of-stock reduction SaaS platform, welcomes a major distributor to the ReposiTrak Traceability Network^® (RTN). The distributor will use RTN to collect and store the intricate, FDA-required Key Data Elements (KDEs) for thousands of its suppliers in advance of the January 2026 deadline.

Most of the distributor’s 6,000 suppliers will be impacted by FDA or customer-mandated traceability and are required to share KDEs every time a shipment is sent. As those suppliers join RTN, they will have the ability to share KDEs with this distributor, and also with their other customers.

"The addition of this distributor has nearly doubled the size of the ReposiTrak Traceability Network," stated Randy Fields, chairman and CEO of ReposiTrak. "Our platform is uniquely designed to scale, which allows companies of any size – from any part of the supply chain – to join, and which also allows us to serve the broader industry with fast, easy traceability data exchange."

The ReposiTrak Traceability Network is free for retailers and wholesalers and suppliers pay a nominal, per-facility fee to connect to an unlimited number of in-network customers. No additional hardware or software is required and the ReposiTrak team assists in making the connections needed under the FSMA 204 food traceability law.

About ReposiTrak:

ReposiTrak (NYSE: TRAK), formerly Park City Group, provides retailers, suppliers and wholesalers with a robust solution suite to help reduce risk and remain in compliance with regulatory requirements, enhance operational controls and increase sales with unrivaled brand protection. Consisting of three product families – food traceability, compliance and risk management and supply chain solutions – ReposiTrak’s integrated, cloud-based applications are supported by an unparalleled team of experts. For more information, please visit https://repositrak.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514091935/en/

Investor Relations Contact:

John Merrill, CFO

Investor-relations@repositrak.com

Or

FNK IR

Rob Fink

646.809.4048

rob@fnkir.com

Source: ReposiTrak

FAQ

What is the ReposiTrak Traceability Network (RTN)?

The ReposiTrak Traceability Network (RTN) is a platform designed for food traceability and regulatory compliance, enabling the sharing of Key Data Elements (KDEs) among supply chain participants.

How many new members are joining the ReposiTrak Traceability Network?

The new distributor addition brings over 6,500 retail stores, 6,000 suppliers, and more than a dozen distribution centers to the network.

What are Key Data Elements (KDEs) in the context of ReposiTrak?

Key Data Elements (KDEs) are FDA-required data points that must be collected and shared for traceability purposes in the food supply chain.

Is there a fee for joining the ReposiTrak Traceability Network?

Retailers and wholesalers can join for free, while suppliers pay a nominal per-facility fee.

When is the deadline for compliance with FDA's KDE requirements?

The deadline for compliance with FDA's Key Data Elements (KDEs) requirements is January 2026.