McLane and RaceTrac Extend Service Agreement

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, announced today that they have renewed their multi-year service agreement with RaceTrac Petroleum, Inc.

McLane and RaceTrac’s relationship dates back to 1996, and McLane’s distribution services encompass all convenience store categories including tobacco, grocery, candy, snacks, and store supplies.

“McLane has been a valuable partner of RaceTrac and plays an integral role in keeping our stores supplied with the products our guests know and love,” says Natalie Morhous, president of RaceTrac. “We are looking forward to our continued partnership.”

McLane’s senior vice president of sales, Vito Maurici, agrees. “RaceTrac is a best-in-class retailer, and McLane is proud to support their growth and expansion initiatives. We anticipate continued success for both parties moving forward.”

RaceTrac is a privately held, family-owned corporation that operates more than 550 stores in six states. As a leader in the grocery convenience store marketplace, RaceTrac maintains its focus on growth, expecting approximately 10% year over year growth in store count as well as continuing a remodel program for a significant portion of their locations. RaceTrac is also expanding its portfolio to travel centers to better serve the professional driver and stores with an expanding diesel offering for small to mid-size fleet drivers.

Foodservice remains a key component of RaceTrac’s growth strategy by offering programs that resonate with their guests while expanding inside sales. McLane helps RaceTrac support these goals by leveraging their purchasing power, geographic distribution, and product assortment, allowing RaceTrac to offer competitive pricing across all of their stores.

“McLane helps ensure that we are able to grow and succeed. The reliability of their deliveries, both in completeness and accuracy, is essential for our stores to remain stocked and able to meet the needs of our guests,” says Jason Phillips, director of procurement at RaceTrac.

Under the renewed agreement, RaceTrac will continue to pull from seven of McLane’s 24 grocery distribution centers to provide excellent service to all of their locations. RaceTrac will also continue to utilize a number of McLane’s innovative solutions and value-adds, such as Virtual Trade Show (VTS), an internet-based trade show that offers new products and promotions from suppliers, and McLane Link, an online portal that allows retailers to access key information like order activity and metric data from their computer or tablet.

© 2020 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.

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