(BRK.A), (BRK.B)
Berkshire Hathaway’s McClane Company has inked a 25-year extension to its service agreement with long-time client Walmart.
As part of this extended agreement, McLane will continue to deliver to Walmart stores across the U.S., in addition to becoming the sole provider of candy and tobacco products to the vast majority of Walmart’s retail locations.
The contract is scheduled to renew in May 2017, and with it McLane will now become the exclusive provider of Walmart’s seasonal candy products to all locations nationwide.
“McLane’s ability to deliver temperature-sensitive products to all of our stores and manage our large volume of seasonal goods will ensure we have the best selection of high-quality products at the lowest cost for our customers,” said Vice President of Candy and Impulse Merchandising at Walmart, Joe Grady.
“McLane is proud to be a long-time partner of the world’s largest retailer. We are excited to expand our product mix with Walmart as we continue to serve all of Walmart’s U.S. locations,” said Tony Frankenberger, President of McLane Grocery.
Walmart has a long history with McLane. The company was originally acquired by Walmart in 1990, and later sold to Berkshire Hathaway in 2003.
© 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.