Paul Alves, president of the Tire Alliance Group (TAG), presented record-setting results for 2014 to its membership at the group’s annual spring meeting in Charleston, S.C.
Alves stated that the 2014 growth by TAG’s strong base of large regional retailers and distributors outpaced the industry performance last year. He also expressed his appreciation for the great support that the membership has given to the group’s programs over the past several years. He attributes the group’s gains to the quality and market dominance of its members, as well as the enhancement of the group’s existing preferred vendor programs and the addition of new supplier programs.
Just over the last two years, TAG has grown its tire purchase volume by over 40%. “Our growth is not only attributed to the existing members taking on more programs from our product portfolio, but also to the addition of key new members and new vendor programs,” Alves stated.
In 2014 TAG added two new strategic partners. CJ’s Tire Service, based out of Birdsboro, Pa., operates 13 retail locations as well as a regional distribution network. Midwest Tire & Muffler, based out of Siouz Falls, S.D., operates eight retail locations under the TMA Complete Car Care brand and also has a wholesale distribution network supported by three warehouses in the Dakotas. These new members have added to TAG’s national footprint and have increased the group’s total number of retail outlets to well over 2,000 stores.
Over the past year TAG has added three new tire programs. The group signed vendor agreements with Hankook Tire America Corp., Vee Rubber America Inc. and ITA USA (with the Achilles brand). “The new vendor programs have allowed TAG to offer our membership more variety and the ability to enhance their product portfolio through the group,” Alves said. These are in addition to the current tire programs with Yokohama Tire Corp., Falken Tire, Pirelli Tire North America, Husky Tire (Blacklion brand), Fullrun Tyre (Autogrip brand) and Giti Tire (USA) Ltd. (Runway brand).
Moreover, TAG paid out record dividends to its members in 2014. Alves indicated that more than $10.4 million was distributed to rebates and bonuses. “We have been able to structure our program as to maximize our buying leverage and power and have been able to increase rebate payments to our membership.”
While TAG’s growth has been strong, according to Alves, he also emphasized that the buying group continues to look at expansion opportunities in markets where strategic additions make good business sense and strengthens the relationships TAG enjoys with its vendors partners. TAG has been in business for 19 years and consists of 17 members spanning most of the U.S.
