(BRK.A), (BRK.B)
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