Health Care Distributor-November/October, 2002

Stewart Rahr Leads Kinray's charitable efforts in
memory of those lost on 9/11.

Kinray Inc. of Whitestone, N.Y. and Stewart Rahr, the company’s president and CEO, continue their charitable and civic efforts on behalf of various individuals and organizations.
Especially ambitious were the September 11 observances conducted by Kinray in memory of last year’s attacks. In ceremonies outside the company’s Whitestone headquarters, checks of $25,000 each were presented to four families of firefighters and police killed on 9/11. The $100,000 total was contributed by the company, Kinray employees and pharmacies served by the wholesaler.

The checks were accepted on behalf of the families of fire Lt. Kenneth Phelan, firefighter Vincent Morello and police officers Thomas Langone and Paul Talty. Kinray’s 800 employees and representatives of local police and fire departments participated in a prayer service led by Rabbi Marc Gellman and Monsignor Tom Hartman. U.S. Rep. Gary Ackerman participated as did Helen Marshall, president of Queens borough. Marshall called the contributions to the families “an excellent example of corporate responsibility.” In addition, 2,801 red, white and blue balloons were released at the afternoon memorial, each representing a life lost during the 9/11 attacks. Two separate minutes of silence were observed representing the times when the towers collapsed, and a dozen white doves were released symbolizing hope for peace. Rahr said he would donate a percentage of the company’s revenues on 9/11/02 to local charities that aided those devastated by the attacks.
“It is my hope that we will all find some measure of solace in this tribute,” Rahr said. “Let’s replace the feelings of helplessness that so many of us felt last year with positive actions this September 11th. God Bless America.”

Earlier, in Christie’s auction, Rahr purchased the original signed photograph, “Firefighters at Ground Zero.” The $89,625 purchase price was earmarked for disaster-relief funds. The photograph is now proudly displayed in Kinray’s lobby. Kinray also donated medical supplies to Ground Zero and held a memorial at one month following 9/11. In a separate charitable effort, Rahr organized the first annual Joseph Rahr $100,000 Memorial Golf Invitational, held Sept. 25 in remembrance of his late father. The event, at the Trump National Golf Club, benefited the Make-A-Wish Foundation of Metro New York. Rahr personally committed $100,000 to the foundation, which grants wishes to children with life-threatening illnesses. “Although my father’s schedule allowed him little time to play golf, I’m sure that he would have been honored to have an event established in his name that would benefit less fortunate,” Rahr said. “He was that type of guy. In the near future, I look forward to exceeding the $1 million mark in my father’s memory.” Joseph Rahr and a partner founded Kinray in 1944, but several years later seriously considered liquidating their small business. Stewart’s brother was involved in the company at the time, and Stewart left law school because he, too, wanted to “have a try at the business.” Several years later he bought out his brother’s interest. At the time when Stewart took over from his father, the company reportedly had 10 employees and $1 million in annual sales. Under Stewart’s leadership, Kinray has grown to become the world’s largest privately held distributor of pharmaceuticals, HBCs, OTCs, medical equipment and related. It has a 600-item private-label program. Kinray’s 2001 sales were in excess of $2 billion, and the company predicts that 2002 sales will top $2.5 billion.

Kinray serves nearly 2,000 pharmacies in seven states of the U.S. Northeast, including the New York City metro area. The company was a leader in the creation of the Wholesale Alliance Cooperative, a group of independent regional drug distributors that aims to help preserve the viability of small pharmacies. A recent article by Tom Fredrickson in Crain’s New York Business describes Kinray’s rise in the drug distribution industry, including the company’s fast inventory-turnover ratio and its skill at picking up customers from companies that have failed. “Pharmacists in Kinray’s seven-state region say the company fills orders more accurately, more personably and often less expensively than its competitors,” the article said. Crain’s also describes Rahr’s skill in inspiring those who work for him. “He can manage people, energize people and excite people. He can get people to follow him to hell and back,” one individual told the magazine. Kinray is No. 130 on Forbes magazine’s 2001 list of the 500 top privately held companies, and it holds the No. 17 position on Crain’s list of the top 200 private companies in the New York tri-state area. The company has won the distinction of the No. 1 privately held company in the four outer NYC boroughs in the Bridges to Success program.