After developing the structure, organization
and operational process for the first coupon redemption
service in Quebec, Gilles Nadeau set up Redemco Promotions
Inc. in 1984.
The company's first client was the Montreal household product manufacturer Lavo. Soon afterward, Wong Wing, Agropur and Agrinov joined the ranks of Redemco clients. One by one, these companies realized that coupons were very valuable promotional tools, and that they could be effectively handled right here in Quebec. Next came Culinar, a national company with a high volume of coupons that pushed Redemco into its first rapid growth phase.
A number of wholesalers took advantage
of Redemco's services in 1986, accelerating the growth of
the company even more. Métro-Richelieu, which had handled
and managed its own flyer coupons internally, found itself
overwhelmed by the success of its activities and gave Redemco
the exclusive mandate to handle it all. We're happy to say
that Métro-Richelieu remains one of our major clients
to this day.
Later the same year, another major wholesaler, IGA, hired Redemco. Provigo followed suit in 1987, making Redemco the leading coupon management firm in Quebec.
Redemco's credibility and integrity have solidified our reputation in the market, a factor of great importance in the development of the company, according to our founding president: "We had to inspire the same confidence and demonstrate the same credibility as a chartered bank."
Over the next few years, Redemco diversified operations and branched into new sectors. In the fall of 1989, Redemco worked with Hydro-Québec to develop the "Économie d'énergie" program. The program was launched in April 1990 with a highly successful showerhead promotion. Redemco compiled over 65,000 reimbursement requests - the largest promotion of its kind ever in Quebec. The program ran until 1992 and Redemco handled all related promotions, including distributing merchandising kits to hardware stores.
The Hydro-Québec program launched Redemco into a new growth phase, and we hired 30 new employees to handle the demand. Soon afterward we made a move to bigger premises.
In 1993, the Association des grossistes en alimentation and the Grocery Products Manufacturers of Canada decided to seek out a single supplier to handle all coupons across the country. Their main objective was to take advantage of economies of scale.
Pointing out that Quebec consumers have
distinctive shopping and coupon use habits, Redemco was able
to convince the Quebec members of these associations that
their interests are better served by a company with an
intimate knowledge of the local market.
The Quebec members decided to dissociate
themselves from the decision made by members in the rest of
the country, and, on January 1, 1994, Redemco was granted
the exclusive mandate to handle all circular coupons in Quebec.
Over the past few years, Redemco has been actively involved in developing measures to counter a problem that has had a long-term negative impact on the coupon industry: misredemption. By working actively with manufacturers and especially by instituting rigorous detection measures, Redemco has reduced the level of coupon misredemption from 18% to just 1.5% of processed coupons.
Since 1995, the company has handled an
average of over 100,000,000 coupons per year - that's 400,000
coupons a day!