Monthly Archives: September 2016

Dairy Queen Goes All In On Snacks

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Dairy Queen has unveiled a new line of oven-hot snacks, a first in the quick-service restaurant category. With the introduction of the DQ Bakes!® Snacks Menu, the brand is aimed at today’s on-the-go consumer looking for higher quality snacking options such as soft pretzels with zesty queso, potato skins and snack melts.

The new DQ Bakes! Snacks Menu is the first menu enhancement to come out of the DQ Bakes! Institute. The DQ Bakes! Institute was established in 2015 to inspire, develop and enhance innovation from the DQ kitchen. The DQ Bakes! Institute creates new and unique taste experiences fans can’t get anywhere else and made-to-order innovations served straight from the DQ oven.

“In developing the DQ Bakes! Snacks Menu, it was important for us to show these items are not simply smaller versions of products we currently offer like others routinely do in our category,” said Barry Westrum, Executive Vice President of Marketing for American Dairy Queen Corporation (ADQ). “Instead, they are two brand new snacks created with distinct cravings in mind. We know Millennials enjoy snacking throughout the day and relied on that insight to create a high-quality menu specifically made for snacking. Our snack menu continues to prove that the DQ brand truly listens to our Fans when creating new menu items.”

The snacks include:

• Soft pretzel sticks with zesty queso: Three soft pretzel sticks, served hot from the oven, topped with salt and served with warm zesty queso dipping sauce.
• Potato skins: Potato skins served hot from the oven filled with zesty queso cheese sauce, bacon bits, cheddar cheese and seasoned with a dash of salt & pepper.
• Buffalo chicken snack melt: Grilled chicken, buffalo sauce, ranch dressing and melted cheddar cheese inside a tortilla toasted to perfection.
• Chicken bacon BBQ snack melt: Grilled chicken, BBQ sauce, bacon and melted cheddar cheese inside a tortilla toasted to perfection.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Drone Insurance Anyone?

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Want to deliver pizzas by drone? Well, don’t discount the risk when grandma gets hit by a flying pizza. The new world of unmanned drones has brought with it a whole new world of liability, and for Berkshire Hathaway, liability coverage.

Berkshire’s General Star Management Company is now offering CGL coverage specifically designed to protect the manufacturers, distributors and operators of unmanned aircraft systems (UAS), more commonly known as “drones.” In addition, contingent coverage for unmanned aircraft systems operations conducted on behalf of the insured is available.

Protection afforded by the Casualty Division is targeted to manufacturers, distributors and operators of hobby and commercial unmanned aircraft weighing up to 55 lbs.

Operators must operate the devices within applicable FAA regulations and guidelines. “Start-up” as well as established entities are eligible for the new offering.

General Star will entertain UAS operators including but not limited to:

• Use of unmanned aircraft for research, governmental or commercial purposes
• Real estate surveyors using unmanned aircraft for aerial surveying
• Professional photographers using unmanned aircraft for commercial purposes

Primary limits of $1M/$2M/$2M/$1M are available for manufacturers, distributors and operators. Excess limits of $2M in addition to the Primary limits are also offered. Contingent liability coverage for UAS operations conducted on behalf of the insured offers primary limits of up to $2M/$4M/$4M/$2M and $10M excess of underlying primary limits.

Coverage for aircraft collision and for privacy violations arising out of UAS operation is included for manufacturers, distributors and operators. Written on an occurrence basis, the new protection contains no or nominal deductibles.

“We are pleased to provide our wholesale clients with a policy designed to address the unique hazards and exposures associated with one of today’s top emerging trends – drones,” said Liana Tufariello, Underwriter and Project Leader for General Star. “The popularity and usage of drones for commercial purposes has exploded, and this is just the type of E&S products liability opportunity we are eager to tackle.”

Cole Palmer, Vice President and Casualty Division Manager, added, “Responding to emerging trends, and creating new offerings for our wholesale clients to sell, are examples of how we help our clients grow their business. Innovative offerings on new technology devices, or taking a second look for creative alternatives on traditional exposures, will contribute to the growth goals of both our clients and General Star. Being a ”good steward” of an existing book is no longer a sustainable model in today’s competitive environment.”

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkshire Hathaway Turns Away From Reinsurance Business

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Berkshire Hathaway’s long term love affair with the reinsurance continues to wane. Over the past few years, Warren Buffett, Charlie Munger and Ajit Jain all have spoken about the changes in profitability in the reinsurance market.

The latest proof comes as Berkshire Hathaway has dropped to sixth in A.M. Best’s annual special report on the global reinsurance industry.

“The reinsurance business not as good as it once was and is unlikely to get better,” Charlie Munger said at the 2015 Berkshire Hathaway annual meeting. “Money has come in, not because they want to be in reinsurance, but because it’s an uncorrelated asset class. We’re in it for the long haul.”

“What we’ve seen from Berkshire Hathaway is that they recognize that reinsurance opportunities are not where they need to be from a pricing perspective,” A.M. Best Vice President Robert DeRose said. “They have pulled capacity back from that particular aspect of the market and they are building out insurance strategies.”

DeRose stated that Berkshire Hathaway is specifically building out that capacity through Berkshire Hathaway Specialty Insurance Co. Also, Berkshire Hathaway, through its General Reinsurance Corp. franchise, has entered into a five-year agreement under which Transatlantic Reinsurance Co. will serve as its exclusive underwriter for U.S. and Canadian property/casualty treaty reinsurance business.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

CTB Acquires Majority Share in Denmark-Based Cabinplant

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Berkshire Hathaway’s wholly-owned CTB, Inc. has signed an agreement for the acquisition of a majority share in Cabinplant A/S, one of the world’s leading manufacturers of processing equipment for vegetables and fish.

Cabinplant’s poultry processing equipment complements that made by CTB’s Meyn poultry processing subsidiary.

Cabinplant A/S has its headquarters in Haarby, Denmark, west of Copenhagen, as well as having subsidiaries in Poland, Germany, Spain and the United States.

Cabinplant employs close to 300 people and has representatives in more than 30 countries worldwide. It also works in close partnership with customers in major markets around the globe. Part of its expertise includes system customization achieved through close collaboration with its customers.

Cabinplant’s systems, which feature high yield and minimal waste, are used by companies that process seafood, fruits and vegetables, poultry and convenience foods.

CTB’s chairman and chief executive officer Victor A. Mancinelli said, “The acquisition helps CTB to broaden the range of poultry processing options it can offer its customers as well as expanding into new market areas for processing, such as seafood and vegetables. Cabinplant’s knowledge of the food industry and its innovative approach to product development and implementation fit very well with CTB’s approach to its core markets.”

Cabinplant was founded in 1969. Company co-owner and chief executive officer Ralf Astrup and co-owner and chief financial officer Jan Helskov Hansen will continue in their current leadership positions. Operations will remain in the existing facilities.

Completion of the transaction is subject to applicable governmental approvals.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

See’s Candies to Open Store in New York City

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One thing every See’s Candies lover knows is that it’s iconic black-and-white checkered floor candy shops are ubiquitous in California, and nowhere to be found on the East Coast. That’s why travelers have long brought boxes of See’s chocolates back home with them from their trips west.

Well fear no more, as See’s has announced that it will be opening its first East Coast retail store. The store will be located at 60 West 8th Street in New York City’s Greenwich Village neighborhood, and will serve more than 100 varieties of candy—all made from scratch with quality ingredients.

This will be the first See’s location on the East Coast with a candy counter, which allows guests to build their own custom boxes of chocolates. And yes, the 625-square-foot shop will feature the iconic black-and-white checkered floor.

See’s has partnered with Bill Rhodes, CEO of Travis Melbren Inc., to open its newest shop in Manhattan in the fall of 2016.

“Hand picking treats at the candy counter has always been one of the most memorable parts about going to a See’s shop, and I’m thrilled to be able to introduce one of my favorite traditions to the residents of New York,” said Bill Rhodes, CEO of Travis Melbren Inc.

Almost a Century of Chocolate Delights

Founded in 1921 by the See’s family, See’s is headquartered in sunny California, and has over 200 retail shops across the country and an online shop that serves See’s fans around the world. See’s was acquired by Berkshire Hathaway in 1972.

No opening date for the Manhattan store has been announced.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Commentary: NV Energy Fights the Battle of Nevada

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Berkshire Hathaway’s NV Energy has been in a fight on several fronts. On one side it has rooftop solar companies, such as Solar City, trying to pitch consumers to generate their own electricity. On the other side are major casinos that are looking to dump NV Energy because they say their rates are too high.

Both MGM Resorts and Wynn Resorts are paying tens of millions to exit the NV Energy power grid on October 1.

Faced with these challenges, NV Energy is doing the smartest thing it can. It is working to cut the cost of generating electricity in order to make it the most attractive option for residential and commercial customers alike.

A proposed 100-megawatt solar project in Boulder City, Nevada, will do just that. When it comes on-line in 2018, it will produce electricity at only four cents per kilowatt-hour, which is one of the lowest costs in the United States.

The new solar energy project is the result of a Request for Proposals that was issued earlier this year. With the oversight of an independent evaluator, NV Energy signed a 25-year power purchase agreement with Techren Solar LLC to build a 100-megawatt high-efficiency single-axis solar photovoltaic project in Eldorado Valley. The project is in the development phase and, subject to regulatory approval, is expected to be operational in the fourth quarter of 2018.

NV Energy’s Senior Vice President of Energy Supply Kevin Geraghty noted that the selection criteria for the new solar project was primarily based on the best value to NV Energy customers, but also factored in economic and job benefits to Nevada.

“At an average cost of energy for the life of the project at approximately four cents per kilowatt-hour, this is one of the lowest-cost solar projects in the nation. And, we are very pleased with the fact that Techren has already signed a work-site agreement with local unions 357 and 396 of the International Brotherhood of Electrical Workers,” Geraghty said.

This is not the first low-cost solar deal for NV Energy. In 2015 it agreed to a 20-year fixed-rate contract for First Solar’s soon to be built 100 MW Playa Solar 2 at the low rate of only 3.87 cents a kilowatt-hour.

Retiring Higher Cost, High Polluting Coal-Fired Plants

The other part of the battle is getting rid of higher cost, legacy coal-fired plants. The plants not only cost a lot to run, but put NV Energy on the wrong side of green consumers.

Also in its August 15 filing, NV Energy proposed an earlier retirement date for the remaining 257-megawatt coal-fired unit at the Reid Gardner Generating Station. The proposal asks to move the original December 31, 2017, retirement date to February 28, 2017.

NV Energy already retired the first three generating units at Reid Gardner at the end of 2014, and is also exiting its participation in Arizona’s coal-fired Navajo Generating Station by the end of 2019.

Lots of Sunshine

With Nevada having an average of 294 sunny days a year, it’s one the most attractive states for rooftop solar, but that also makes it one of the best states for large-scale solar farms.

The good news for NV Energy, and all of Berkshire Hathaway Energy, is the cost of large-scale solar power generation has dropped far more rapidly than analysts had predicted.

The U.S. Department of Energy (DOE) noted that “2020 price projections are approximately one-half of what same analysts projected 5-10 years ago.”

The DOE is projecting a decline in solar PV system module prices for utility scale installations from its $4 in 2010 to less than $2 by 2016. Utility-scale PV is defined as ground-mounted systems that are greater than ≥5 megawatts.

NV Energy is betting that it can retain customers by aggressively lowering the cost of power generation with low-cost, long-term agreements, and by closing its legacy coal-fired generating plants. Its planned 100-megawatt Techren Solar project will bring NV Energy’s total renewable energy portfolio to more than 1,900 megawatts–enough energy to serve more than a million average homes.

It’s the right plan for NV Energy in the battle for the Nevada consumer.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

McLane Becomes Primary Service Provider for fred’s Pharmacy

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, has been chosen as the main distributor for fred’s Pharmacy. With more than 650 locations across the Southeastern part of the United States, this new service agreement allows McLane’s nationwide reach and expertise to consolidate the work of fred’s 60-plus previous distributors.

“McLane is well-known in the industry for offering supply chain efficiencies and additional benefits of scale of a single source of supply for key consumable categories,” said Chief Executive Officer, fred’s Inc., Michael Bloom. “Partnering with McLane as an alternate distribution source allows us to improve our efficiencies and overall direct-to-store process including our ability to improve service, assortment, and freshness; and ultimately grow sales and profit.”

fred’s recently participated in McLane’s value-add Center for Category Innovation (formerly Lab Store) process, where the retailer was able to benefit from McLane’s proprietary sales database and category managers to identify and capitalize on key merchandising trends and market-specific product mix and planograms.

“fred’s has uniquely positioned itself to be a successful pharmacy retailer with a broad value based assortment in the Southeast,” said Tony Frankenberger, president at McLane Company, Inc. “It’s a privilege to be chosen as a supply chain provider for fred’s, and further help the company reach its goals.”

About McLane

McLane Company, Inc. is one of the largest supply chain services leaders in the U.S. providing grocery and foodservice supply chain solutions for convenience stores, mass merchants, drug stores and chain restaurants throughout the United States. McLane, through McLane Grocery, McLane Foodservice and wholly owned subsidiary, Meadowbrook Meat Company, Inc., (MBM), operates 80 distribution centers across the U.S. and one of the nation’s largest private fleets. The company buys, sells and delivers more than 50,000 different consumer products to nearly 90,000 locations across the U.S. In addition, McLane provides alcoholic beverage distribution through its wholly owned subsidiary, Empire Distributors, Inc.

In May 2003, Berkshire Hathaway acquired McLane Company from Wal-Mart, and the company currently has more than 20,000 employees.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

BNSF Launching New Intermodal Service Between Pacific Northwest and Texas

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Beginning Monday, Sept. 12, BNSF Railway (BNSF) will offer intermodal customers a new service option to move freight between the Pacific Northwest and Texas.

Shippers who move commodities and a wide range of consumer goods between Portland, Oregon, or Seattle and Dallas/Fort Worth (AllianceTexas) will now be able to reduce their transit times by up to two days when compared to rail transit time options currently in the marketplace.

The new BNSF service will be comparable in speed to single-driver, over-the-road options.

“We regularly work with our customers to identify and offer new and better transportation solutions to make their supply chains more effective. So we are constantly looking for opportunities to help meet consumer demands and this new service checks all the right boxes for adding efficiency to the marketplace,” said Katie Farmer, group vice president, Consumer Products. “With an economy as dynamic as ours, BNSF is focused on delivering options that strengthen the competitive advantage of U.S. companies through our country’s supply chain.”

This new service option, the first of other new routes that will be announced and rolled out over the next year, comes online just in time for the fall fruit harvest in the Pacific Northwest and will help local businesses get their products to market more efficiently. Faster, more direct routing means agriculture producers can move apples and other produce to southern markets at the peak of freshness.

By leveraging underutilized capacity in the central section of BNSF’s network, this new service option means that BNSF will offer expedited service for customers who wish to have their shipments arrive in Dallas/Fort Worth on the morning of the fifth transit day. From BNSF’s intermodal facility located just north of Fort Worth, customers can reach any of the major Texas or Oklahoma markets with a short-haul trucking option to move containers and trailers for dry or refrigerated goods. Northbound service will also be faster operating with both expedited service arriving on the sixth morning and standard service reaching its destination on the sixth day.

Traffic along the route will run Monday through Friday, in both directions. This route includes a refueling option along the way for refrigerated equipment that carry temperature-sensitive equipment.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Commentary: Is Now the Time for Kraft Heinz to Make a Play For Mondelez?

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When Berkshire Hathaway and 3G Capital put together Kraft Heinz in 2015, the talk in the street was all about whether adding Mondelez International would be the next step. After all, Mondelez used to be part of Kraft before it was spun-off in 2012.

At the time, Warren Buffett downplayed the idea, noting that the newly formed Kraft Heinz had much to do in order integrate the two companies.

“At Kraft Heinz, we have our work cut out for us for a couple of years,” Buffett told CNBC. “Frankly, most of the food companies sell at prices that it would be very hard for us to make a deal even if we had done all the work needed at Kraft Heinz.”

Is Now the Time?

Here we are a year later and the fate of Mondelez in the rapidly consolidating food industry is still not clear. The company just dropped its proposed takeover of chocolate king Hershey, and the question of whether it’s an acquirer or acquiree is back in play.

As far as size goes, Mondelez has a market cap of roughly $67 billion, as compared to Kraft Heinz’s $109 billion, and combined they would put Kraft Heinz ahead of Unilever, which has a market cap of $143.4 billion, and move it closer to Nestle, which has a market cap of over $246 billion.

Berkshire and 3G Capital

Warren Buffett has clearly been pleased with his dealings with Jorge Paulo Lemann, Alex Behring and Bernardo Hees of 3G Capital. Partnering with 3G has brought a tough, tight-fisted management style that seeks to ring inefficiencies out of large-scale legacy companies, and Berkshire has benefited by gaining equity and putting large chunks of cash to work financing the deals.

Much of Berkshire’s financing takes the form of preferred stock, which has paid high interest rates in a low interest rate world. It’s a deal that Buffett loves, and one that he also used to help shore up companies such as Bank of America, Goldman Sachs and Dow Chemical during the Great Recession.

However, the high interest dominoes have been falling one after another as companies became healthy enough to get cheaper financing.

Similarly, when Berkshire and 3G went in on Kraft Heinz in 2013, Berkshire received $8 billion in preferred shares that paid it $720 million annually. Those shares were redeemed this summer as Kraft Heinz moved to lower its borrowing costs. It was a move that Buffett lamented in his annual letter to shareholders “…will be good news for Kraft Heinz and bad news for Berkshire.”

In addition, Berkshire’s $3 billion in preferred stock in Dow Chemical, which currently pays Berkshire $255 million a year, looks likely to end this year unless the market slumps, keeping the price of Dow Chemical shares below $53.72. .

Now that those deals have been coming to an end, a large chunk of preferred stock from a combined Kraft Heinz and Mondelez merger would be a fitting substitute.

Placing Their Bets

In August 2015, activist investor Bill Ackman took a $5.6 billion stake in Mondelez, a bet that clearly signaled he thought the snack maker would be acquired.

Among the other potential buyers could be Pepsi, which already owns Frito-Lay, and is facing declining sales in the traditional soda business, as consumers look for healthier options.

A Prize Worth Winning?

While a merger of Kraft Heinz and Mondelez has made sense to Wall Street, does it ultimately make sense in the world of consumer preferences in the 21st century?

When Mondelez was spun-off from Kraft, it was supposed to be the more exciting, high-flying of the two companies. However, its stock promptly slumped, and today it’s barely higher than it was five years ago. Many of Mondelez’s brands, which include Triscuit, Ritz, and Chips Ahoy!, reflect the consumer tastes from the 1930s-1960s, and its Oreo cookie goes back even further, first hitting store shelves in 1912. These brands are still popular, but will they be in another fifty years?

So, is Mondelez even a prize worth winning? That depends on whether there are similar savings that can be wrung out of Mondelez as there has been with Kraft and Heinz. If Berkshire and 3G think there are, there could be the next global food giant ready to take the stage.

One thing that is clear, in the 21st century world of food manufacturing and distribution companies, the assumption is that size matters in order to have global reach that can take advantage of growing markets in South America, India and China.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

McLane Debuts New Private Label Product Line

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, announced at its annual National Trade Show that it is rebranding its private label company Salado Sales to CVP® (Consumer Value Products).

The private label company’s goal is to offer quality private label product lines equal to or better than name brands for a lower price and higher margins for retailers, and will be offered only to McLane customers.

Along with the rebranding to CVP, McLane will debut five new brands and provide an affordable and exclusive mix spanning 240+ foodservice, automotive, candy and snacks, general merchandise, grocery and health, beauty and wellness products. Road-Tech and Work Fare, two of McLane’s established private label brands will still be available to consumers through the rebranded CVP line.

According to a report cited by McLane, 47 percent of consumers buy more private label today than before the economic downturn began, and that one-in three US shoppers actively searches for store brands to save money.

“McLane’s new comprehensive CVP line provides retailers who don’t already offer a private label products or have the resources to stock private label inventory the ability to do so and at attractive prices, while keeping their gross margins and profits high.”

Having founded Salado Sales, its original private label company in 1993, McLane says it designed the new comprehensive CVP family of brands to reflect the needs of consumers today including delivering a product mix that offers relevancy, variety and value, while saving them money.

Under CVP’s umbrella, McLane will make available five new brands consisting of:

Hometown Market – The Hometown Market line will offer a variety of products like banana nut granola, nuts, trail mix and yogurt pretzels to sugar and creamer that support c-stores foodservice operations, and many of which will also meet The Partnership for a Healthier America (PHA) healthy criteria.

Pristyn Purified Water – Also part of the PHA commitment, McLane will support the organization’s signature “Drink Up” initiative to help promote more consumption of water. The Pristyn Purified Water is a purified bottled water line to be sold in 100% recycled individual bottles and 24-packs.

Excursion Beef Jerky – The Excursion Beef Jerky line is the ultimate protein snack with zesty flavors ranging from Smokey BBQ Pork Jerky, Teriyaki Beef Jerky, Cracked Pepper Beef Jerky to Smokehouse Beef Jerky.

YumBees – To appease the sweet-tooth, the YumBees line will offer various hard, gummy and chocolate candy products as well as a variation of favorite name-brand products.
Beau Dacious Biscuits – According to Pet Industry News, dog treat purchases consumed 16% of pet food spending in 2014 and are expected to grow exponentially. Beau Dacious Biscuits is a new line of quality dog treat products available in peanut butter, grain free yogurt and cranberry bites and assorted treat flavors.

“Consumers today want the option to purchase quality store-branded products at a reasonable price, so it made sense for us to up our commitment to private label and rebrand to fit the needs of our retail customers,” said Teresa Voelter, general manager of private label at McLane.

Voelter added, “McLane’s new comprehensive CVP line provides retailers who don’t already offer a private label products or have the resources to stock private label inventory the ability to do so and at attractive prices, while keeping their gross margins and profits high.”

Looking ahead, McLane plans to roll out additional new products under the CVP family of brands in 2017. Consumers will also be able to utilize a new product search tool located on the new CVP site to find their favorite products at one of the 17,000+ retailer locations.

About McLane

McLane Company, Inc. is one of the largest supply chain services leaders in the U.S. providing grocery and foodservice supply chain solutions for convenience stores, mass merchants, drug stores and chain restaurants throughout the United States. McLane, through McLane Grocery, McLane Foodservice and wholly owned subsidiary, Meadowbrook Meat Company, Inc., (MBM), operates 80 distribution centers across the U.S. and one of the nation’s largest private fleets. The company buys, sells and delivers more than 50,000 different consumer products to nearly 90,000 locations across the U.S. In addition, McLane provides alcoholic beverage distribution through its wholly owned subsidiary, Empire Distributors, Inc.

In May 2003, Berkshire Hathaway acquired McLane Company from Wal-Mart, and the company currently has more than 20,000 employees.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results