Category Archives: McLane

McLane and Popeyes End Restaurant Distribution Deal

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, has announced that its McLane Foodservice and Popeyes Louisiana Kitchen have mutually agreed to end their restaurant distribution relationship, effective July 2019.

McLane has been supplying the southern California, Arizona and southern Nevada geographies for Popeyes Louisiana Kitchen restaurants. While both entities appreciate their long-term relationship, each company believes this move will best serve its financial and operational needs in these geographic markets.

Despite this aspect of their relationship coming to an end, McLane will continue to play a part in Popeyes’s supply chain. KINEXO, a subsidiary of McLane that provides innovative supply chain solutions to respected brands in the foodservice industry, will continue to serve as Popeyes’s exclusive redistribution partner nationwide for numerous items from multiple suppliers used or sold in their restaurant outlets.

Additionally, McLane will continue to serve as a primary distributor to Burger King, which along with Popeyes, is owned by Restaurant Brands International.

One of Warren Buffett’s best deals in recent years was his 2014 financing of Burger King’s acquisition of Canadian restaurant chain Tim Hortons, which was renamed Restaurant Brands International.

The deal was financed by Berkshire Hathaway, and Berkshire’s role gave the conglomerate ownership and control over 4.18% of the outstanding Common Shares and 14.37% of the total number of votes attached to all outstanding voting shares of the newly created company.

Popeyes Louisiana Kitchen became a part of Restaurant Brands in 2017, when it was acquired for $1.8 billion.

© 2019 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 Opens New Grocery Distribution Center in Ocala, Florida

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, formally announced it has opened a new grocery distribution center, McLane Ocala, in the Ocala International Commerce Center at 910 NW 50th Avenue in Ocala, Florida.

The 400,000 square foot facility will house 165,000 square feet of dry grocery, nearly 200,000 square feet of perishables and 35,000 square feet of office and support space. The first shipment arrived on February 4, 2019 and deliveries will begin on March 17, 2019.

The new distribution center will create over 400 new jobs in Marion County. By the end of the year, McLane Ocala plans to onboard 316 warehouse and support teammates and 120 drivers and transportation support teammates. Driver hiring began in October of 2018 in effort to allow drivers to become acclimated with McLane’s customers and the delivery process in general. The recruiting team held a three-day job fair in January at the facility and nearly 600 candidates were interviewed, resulting in 233 job offers.

This location will be McLane’s sixth distribution center in Florida, joining the grocery center in Kissimmee and four foodservice centers in Lakeland, Haines City and two in Orlando and will service the quickly-expanding customer base in the North Florida region. Construction Management Technology (CMT), the general contractor for the project, oversaw the renovations and development. The Ocala/Marion County Chamber and Economic Partnership (CEP), The County Commission and Ocala City Council were instrumental to the venture as well.

“We are thankful for McLane Company’s presence here in our community,” said Ocala Mayor Kent Guinn. “We are excited about their growth, their services and their community involvement.”

Michelle Chesnutt and Jerry Winterhalter are leading the operation with a combined 70 years of experience at McLane. Both teammates have held numerous positions within the company. Chesnutt recently transitioned from division president at McLane Dothan in Cottonwood, Alabama, while Winterhalter was vice president of distribution at McLane Sunwest in Goodyear, Arizona.

“We are thrilled to open our new facility in Ocala where the business community is welcoming and open to growth,” said Michelle Chesnutt, division president of McLane Ocala. “The values and work ethic of the prospective workforce is an ideal fit with McLane’s culture. McLane Ocala continues our company’s core initiative to drive customer results.”

© 2019 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 Opening New Texas Distribution Center in Fort Worth

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Co. Inc. will have a new distribution center in Fort Worth, Texas open in March.

The site, dubbed McLane North Texas, will be located at 7550 Oak Grove Road in Fort Worth.

The 625,000-square-foot facility includes ambient, cooler and freezer capabilities. It is currently undergoing renovations to meet the company’s specifications and standards.

The company estimates that the facility will reach full utilization by December 2019.

“McLane North Texas continues the company’s strategic initiatives which drive customer results and position the company for growth into the future,” said Lee Cobb, regional vice president of McLane Grocery.

Craig Rosenthal, a 30-year supply chain veteran, will lead the opening and continued operation of the site.

Rosenthal is currently the division president of McLane Southern in Brookhaven, Mississippi.

McLane North Texas’ service territory will primarily be the Dallas-Fort Worth metroplex, as well as portions of Kansas, Oklahoma, Arkansas and Louisiana. The division is expected to employ approximately 600 people, including 450 distribution center workers and 150 drivers.

Temple-based McLane is one of the largest supply chain service providers in the United States, offering grocery and foodservice supply chain solutions for convenience stores, mass merchants, drugstores and chain restaurants.

© 2018 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 Goes into the Pizza Biz

(BRK.A), (BRK.B)

McLane Company, Inc., Berkshire Hathaway’s supply chain services company that provides grocery and foodservice supply chain solutions, has announced the debut of a new brand: Fly Guys Pizza.

The brand launched at the McLane National Tradeshow through its private label subsidiary, Consumer Value Products (CVP), in coordination with McLane’s foodservice-at-retail program, McLane Kitchen.

Made with premium toppings on a self-rising crust, Fly Guys Pizza arrives frozen and fully packaged for retailers to serve hot by the slice or by the 12” pizza, or the 12” pizzas can be merchandised for retail sale in the frozen section for consumers to bake at home. Fly Guys combines great taste with incredible value and is offered in three delicious flavors: pepperoni, five-meat and breakfast — because it’s never too early for pizza!

The brand was conceived with a unique story of two Italian skydivers. Legend has it that Luciano Rosso and Frederico Moretti had a shared passion for pizza AND skydiving, and they decided mid-air to join forces to share their love of Italian pies with the world. Thus, Fly Guys Pizza was born.

McLane Kitchen and CVP offer customers Fly Guys-branded packaging including pizza boxes and slice trays, equipment ranging from pizza ovens to serving utensils, as well as signage such as posters, menu boards and banners.

“We are thrilled to enter the most talked about category in convenience with Fly Guys Pizza program,” said Teresa Voelter, general manager of Consumer Value Products at McLane. “With retail and foodservice options, our customers will be enthusiastic about the program and its benefits to help drive their sales.”

In addition to Fly Guys Pizza, CVP is also proud to launch new products for Beau Dacious, its line of pet products, that include leashes and food/water bowls, as well as assorted fruit snacks and dinosaur fruit snacks for the YumBees brand at McLane’s National Trade Show.

CVP’s 240+ products are available to both McLane customers and non-McLane customers and are currently offered at retail locations nationwide.

© 2018 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 Expands Florida Distribution Center

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company is constructing roughly 300,000-square-foot addition to its distribution center in Northwest Ocala, Florida.

McLane Company is reportedly spending more than $26.5 million to enlarge the facility.

McLane will add 125 new jobs in Ocala when the expansion is completed.

McLane is one of the largest supply chain services leaders, 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 and McLane Foodservice, operates over 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 110,000 locations across the U.S. In addition, McLane provides alcoholic beverage distribution through its wholly owned subsidiary, Empire Distributors, Inc.

© 2018 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.

QuickChek Re-Ups with McLane Company for the Long Haul

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, has renewed its service agreement with QuickChek Corporation.

The extended agreement, which continues a 28-year relationship, was developed to stimulate a partnership for long-term growth and will include a complete supply chain solution for grocery, beverages, candy, snacks, health and beauty care, general merchandise, cigarettes and other tobacco products to QuickChek’s 154 fresh convenience market locations throughout New Jersey, New York’s Hudson Valley and Long Island.

During the renewed agreement, QuickChek plans to test the Premium Order Management Suite Reclamation application that streamlines the reclamation process by identifying the items that can be returned for credit and sends a detailed report of scanned reclamations digitally.

Named the 2016 National Convenience Store Chain of the Year, QuickChek already takes advantage of various value-added solutions offered by McLane. These include the McLane Link customer portal that allows customers to access key information such as order activity and operational metric data from their computer or tablet and McLane’s Center for Category Innovation that combines the knowledge of McLane experienced category managers and supplier partners with McLane’s extensive data warehouse to provide customers with objective sales data down to the zip code level. The resulting market insights determine the best product mix scenarios and key selling opportunities for the stores.

“McLane and QuickChek share many of the same core values including an unwavering dedication to our customers. We are honored they chose to extend the relationship with a service agreement that promotes long-term growth. We look forward to growing together in the years to come,” said Vito Maurici, senior VP of sales of McLane Grocery.

“We look forward to continuing our relationship and utilizing McLane’s goods and services as we strive for new ways to redefine fresh convenience in meeting the needs of today’s on-the-go, fast-casual shopper,” said QuickChek CEO Dean Durling, whose family-owned company is a market leader in food services with an exceptional fresh coffee and fresh food program offering restaurant-quality food at value prices and a wide array of grocery items.

© 2018 David Mazor

Velocity Transport Joins Blockchain in Transport Alliance

(BRK.A), (BRK.B)

Velocity Freight Transport, Inc. has joined the Blockchain in Transport Alliance (BiTA), a forum for the development of blockchain standards and education for the freight industry.

As one of the first freight brokerage companies to join BiTA, Velocity will work closely with the organization to set new standards for the use of blockchain technology in the transportation space.

With this announcement, Velocity Transport joins a consortium of 250-plus companies that have joined BiTA within the last six months and have a vested interest in the development of blockchain technology.

McLane Company Inc., a Berkshire Hathaway-owned supply chain services company, recently launched Velocity Transport as a freight brokerage company dedicated to providing significant value to both shippers and carriers.

Velocity Transport entered the marketplace to offer comprehensive freight solutions and deliver an unparalleled level of service to both shippers and carriers. Velocity’s decision to join BiTA reinforces the leadership team’s dedication to providing significant value to their clients and leading the freight brokerage industry into a new era of cutting-edge technology and thinking.

“We believe blockchain provides great value in solving industry pain points, but there needs to be clarity and standards around its use and BiTA intends to provide that through education and promotion of the technology,” said Chris Burruss, president of BiTA. “Velocity adds a crucial voice to BiTA, and their perspective will help BiTA and its membership build the world’s first transportation industry-specific blockchain standards.”

By engaging the brightest minds from the most influential leaders in transportation, finance and technology, BiTA is focused on providing educational resources and open forums to those in the industry interested in leading the evolution of the trucking industry through the efficiencies offered in blockchain technology.

“By becoming a member of BiTA, Velocity is connecting with a group of like-minded companies that want to drive innovation and advocate for the adoption of blockchain applications in the freight industry,” said John Lower, vice president of Velocity Transport. “We are very excited about the great potential of blockchain technology and are proud to join the team that will set the standards for its use going forward.”

Other Berkshire Hathaway companies that have joined BITA include BNSF Railway.

© 2018 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 Company Creates Velocity Freight Transport

(BRK.A), (BRK.B)

McLane Company Inc., a Berkshire Hathaway-owned supply chain services company, has launched Velocity Freight Transport, Inc., a freight brokerage company dedicated to providing significant value to both shippers and carriers.

Led by industry veterans Ross Grier, John Lower, Aaron Keister, and Seth Arnoux, Velocity Transport aims to be a first-class freight brokerage company known for their principled approach and quality of service.

According to a company statement, the launch of Velocity Transport comes at a time when the supply chain industry is in need of fresh thinking and an updated business model to enable carriers and shippers to meet their deadlines, growth goals and retain their competitive edge. To help with this, Velocity Transport will offer competitive pricing, relentless service, cutting-edge technology and comprehensive freight solutions.

With its headquarters and operations management stationed in Plano, Texas, Velocity Transport plans to serve clients across the United States, and provide refrigerated, flatbed, intermodal, LTL, van and expedited freight offerings.

“With today’s constant shifts in consumption trends and transportation regulations, supply chain leaders in all industries are facing more volatility and challenges than ever before. We’re launching Velocity Transport to bring comprehensive freight solutions to the market and deliver a level of service that will raise the bar on the freight brokerage industry overall,” said John Lower, vice president of Velocity Transport.

“Our entrepreneurial spirit, commitment to excellence and collaborative approach will enable the Velocity Transport team to remain agile and flexible when delivering solutions. We look forward to providing an exceptional experience to the shippers and carriers in our rapidly evolving marketplace,” Lower added.

© 2018 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 Company Opens $150 Million Distribution Center

(BRK.A), (BRK.B)

Berkshire Hathaway’s wholly-owned supply chain services company, McLane Company, Inc., has opened a new, $150 million, 417,338-square-foot grocery distribution center in Findlay, Ohio.

“Of our 80 grocery and foodservice distribution centers nationwide, the Findlay facility is the most technologically advanced combining teammates, state-of-the-art automation, advanced robotics and artificial intelligence,” said Tony Frankenberger, President of McLane Grocery.

The McLane Findlay distribution center will employ approximately 400-500 teammates in Ohio.

Of McLane’s 80 distribution centers nationwide, the massive Findlay facility is the most technologically advanced – utilizing teammates, robotics and artificial intelligence to deliver over 325,000 picks of items per day at peak operation.

Governor John Kasich gave remarks applauding McLane’s decision to locate in Ohio and highlighted the positive impact McLane has on the community. He touched on some of McLane’s inclusive hiring policies stating, “That is a huge, huge deal, when we’re giving everybody a chance.”

The McLane Findlay distribution center will store approximately 16,000 grocery and convenience store items representing over 700 suppliers, which will continue to increase in 2018. Robots utilize bar codes on the products to store and transfer pallets of goods, traveling up to 60 mph to fulfill orders. McLane teammates help control and program the robots and load and organize products into bins based on the products’ final destinations.

These items are then delivered to convenience stores, mass merchants, warehouse clubs and drug stores in Ohio, Michigan, Indiana and Pennsylvania.

“There is an outstanding culture providing a strong workforce place here in Findlay in Hancock County and when I say strong I mean that in the sense of commitment, respect, and teamwork,” said Julie Norris, Division President, McLane Grocery Distribution.

The McLane Findlay distribution center employed 500 construction trade representatives over the facility’s 14-month construction. The company is committed to hiring Ohioans and contributing to the Findlay and Ohio economy. Teammates are relocating to Findlay from Toledo, Lima, Indianapolis and Detroit to work at McLane. In addition, McLane has hired over 95 truck drivers, with plans to hire 75 more.

© 2017 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 Company Lands Kum & Go Convenience Stores

(BRK.A), (BRK.B)

McLane Company Inc., a Berkshire Hathaway-owned supply chain services company, has announced that Kum & Go, one of the nation’s most respected convenience retailers, has reached an agreement for McLane Company to serve as its grocery wholesaler effective in the second quarter of 2018.

Established in Hampton, Iowa, in 1959, Kum & Go has grown to employ more than 5,000 associates in more than 400 stores in 11 states (Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming).

“McLane’s commitment to technology and operational excellence will be critical as we work together to develop and implement solutions benefitting our customers and associates,” said Chris Jones, senior vice president of marketing at Kum & Go.

Under the multi-year agreement, McLane will begin servicing all Kum & Go stores in early spring of 2018. Kum & Go LC manages and operates more than 400 stores across 11 states.

“Kum & Go is an organization focused on bringing the best product offerings and innovation to its stores so its associates can deliver more than their customers expect. Kum & Go, like McLane, understands the value teamwork brings to the success of a company. On behalf of all the teammates of McLane Company, we are honored to be chosen to not only service Kum & Go, but to work hand-in-hand and implement solutions that bring great value to both organizations,” said Tony Frankenberger, president of McLane Grocery.

© 2017 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.