Tag Archives: McLane Company

McLane and RaceTrac Extend Service Agreement

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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.

McLane and Koupon Partner to Boost Consumer Loyalty for C-Stores

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, and Koupon, the leading promotion solution in the convenience store industry, have partnered to create a seamless integration of Koupon’s digital promotion platform with McLane’s Consumer Loyalty Program application.

McLane is well known for its innovative technology solutions for c-stores, and Koupon provides c-store retailers and CPG brands with the easiest solution to connect with shoppers and grow sales. Together, their partnership will allow c-store operators to take advantage of hundreds of industry CPG coupon offers within McLane’s Consumer Loyalty Program application, reducing product costs for both the retailer and the consumer.

Within McLane’s enhanced Consumer Loyalty Program application, consumers can access digital promotions powered by Koupon’s technology and redeem them at checkout.

There are a number of benefits to McLane and Koupon’s integrated solution, including:

• It is completely free to retailers who use McLane’s Consumer Loyalty Program.
• Consumers can search for and easily redeem coupons pertaining to their purchases at checkout.
• Consumers can receive and redeem store loyalty points based on their purchases, leading to additional offers and benefits.
• As new coupons are added, consumers can take advantage of them in real time.
• Integrated security identifies or limits age-restricted content.

“We are delighted to work with Koupon, who has distinguished itself as the industry leader in this space,” says Deon Johnson, vice president of development at McLane. “By working together, we created a solution that truly benefits both retailers and consumers.”

“This partnership is a significant milestone for the convenience store industry,” notes Brad Van Otterloo, CEO of Koupon. “Integrating Koupon’s digital promotion technology with McLane’s leading Consumer Loyalty Program will benefit the industry as a whole.”

© 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.

McLane Appoints New President and CEO

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, has announced that Tony Frankenberger has been appointed president and CEO, and that Grady Rosier will retire as president and CEO, both effective August 28, 2020.

Rosier has worked for McLane for more than 36 years and has held the title of president and CEO for the last 25 years of that time. His influence has elevated McLane to its position as a world-class leader in supply chain services for the grocery and foodservice industries.

During Rosier’s tenure, McLane has experienced significant market share growth and substantial annual revenue increases from less than $6 billion to more than $50 billion. Its grocery division expanded from convenience stores to other classes of trade, including drug stores, mass market retailers, warehouse clubs, value stores, supermarkets, and alcoholic beverage distribution. Rosier was instrumental in the sale of McLane from Walmart to Berkshire Hathaway in 2003, and he led the charge for a new foodservice division servicing QSR, fast casual, and casual restaurants that quickly became one of the largest in the industry. He has also provided an unwavering commitment to charitable organizations such as Children’s Miracle Network Hospitals and United Way.

“McLane is not just a company to me,” says Rosier. “It has been my passion, and the people at McLane are my family.”

Rosier has made an enormous impact on the supply chain industry and beyond. Prior to joining McLane, Rosier spent more than a decade in various executive roles in the convenience channel. Before that, Rosier had six years of honorable service in the United States Marine Corps and several more in the reserves. He was inducted into the Texas Business Hall of Fame in 2015, and currently serves on the board of directors of NVR, Inc. and NuStar Energy. Rosier earned his Bachelor of Arts from the University of Florida.

Tony Frankenberger will assume leadership of McLane as president and CEO on August 28, 2020, while maintaining his responsibilities as president of McLane Grocery, a $33 billion business unit providing supply chain solutions to over 70,000 retailer locations. Frankenberger has worked for McLane for more than 35 years. Shortly after he concluded his service with the United States Air Force in 1985, Frankenberger began his career with McLane as a washer, fueler, and mechanic in the transportation department and worked his way up in the company. Today, he has more than 15 years of senior management experience, including various past leadership positions in merchandising, procurement, and operations. Frankenberger holds a Bachelor of Arts and Master of Business Administration from the University of Phoenix.

“I have personally known Tony for more than 30 years and feel this is a tremendous opportunity for him to continue building the sustainability and growth of McLane into the future,” says Rosier. “He is an exceptional leader with a track record of operational excellence, building high performance teams, and extraordinary customer service.”

Frankenberger’s notable rise through the ranks and steadfast commitment to McLane’s values and beliefs pave his way to success in the new role.

“I am thrilled for Grady, and I wish him nothing but health and happiness in this new chapter of his life,” says Frankenberger. “I am honored to follow in his footsteps at an incredible company with outstanding teammates.”

© 2020 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a 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.

Susan Adzick is New Leader of McLane Foodservice

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, announced that Susan Adzick has assumed leadership of McLane Foodservice as president, effective July 20, 2020.

McLane Foodservice’s former president, Tom Zatina, has been named executive vice president and chief strategy officer of McLane Company.

Adzick was promoted to executive vice president and chief operating officer of McLane Foodservice in January, as part of a planned transition to president this summer. Adzick has contributed invaluable leadership to the Foodservice division for more than 20 years.

“When Susan Adzick’s promotion was announced in January, I could not have envisioned the challenging circumstances that 2020 would bring to our business and to our country,” says Grady Rosier, president and CEO of McLane. “During these uncertain times, Susan has demonstrated a steady hand, thoughtful leadership, and unwavering stewardship of McLane’s beliefs and values. Her performance this year has reinforced my confidence that she is the right individual to lead McLane Foodservice.”

Zatina, who served as president of McLane Foodservice for 14 years, also began his new corporate role on July 20, 2020. As executive vice president and chief strategy officer of McLane, Zatina will lead key projects that are critical to driving process improvements and will enhance McLane’s capabilities in meeting current strategic objectives.

“In Tom Zatina’s tenure as president, he has been successful in growing McLane Foodservice into one of the largest foodservice suppliers in the industry,” says Adzick. “His commitment has had an immeasurable impact on McLane, our teammates, and our stakeholders.”

© 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.

McLane Renews Multi-Year Contract with Convenience Store Retailer EG America

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, has renewed their multi-year contract with EG America.

McLane has serviced EG America for the past several years, and the new multi-year contract period began on April 18, 2020. McLane’s distribution services cover all convenience store categories including tobacco, grocery, candy, snacks, and store supplies.

EG America is a national convenience store retailer with 1,700 stores in 31 states. In the span of only two years, they have become a top five retailer with the acquisition of Kroger’s c-stores, Cumberland Farms, Minit Mart, Certified Oil, and Fastrac. As a leader in the grocery convenience store marketplace, EG America will continue to utilize McLane’s scale of 24 grocery distribution centers across the U.S. to provide excellent service to all of their locations, except for Cumberland Farms and Fastrac which self-distribute.

With McLane’s abundant resources, they will help EG America roll out their marketing plans nationwide and build on the brand equity of their acquired business. EG America plans to utilize McLane’s national, regional, and local data to maximize their offerings to consumers. McLane’s Virtual Trade Show (VTS), an online trade show offering new products, deals, and promotions, will provide EG Group with savings on critical items for their stores.
“Working with McLane has helped us add value to our business with their quick access to data analysis, as well as their impressive scale,” says George Fournier, president at EG America. “We look forward to our continued partnership.”

Vito Maurici, senior vice president of sales at McLane, agrees. “EG America is a valued McLane customer. During our relationship, they have shown great partnership in helping grow sales and profitability for both entities. We look forward to working with them for the next several years and beyond.”

© 2020 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a 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 Promotes Jeff Hayes to VP of Sales and Business Development of McLane Foodservice

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, announced that Jeff Hayes has been promoted to vice president of sales and business development of McLane Foodservice.

Hayes is responsible for leading the business development and customer relationship management of the entire McLane Foodservice portfolio of 33 leading restaurant brands. In this role, Hayes will ensure alignment with the needs of strategic partners and seek to enable the growth potential for McLane Foodservice and its customers.

“Jeff Hayes is a proven leader who values relationships and partnerships with our customers,” says Susan Adzick, executive vice president and chief operating officer of McLane Foodservice. “He is a strategic thinker who will continue to grow the McLane Foodservice brand, and he will champion the culture that remains at the core of our success.”

Hayes has been with McLane Foodservice for more than 26 years, holding various roles within the finance and national accounts teams. Most recently, he served as vice president of national accounts and was responsible for many collaborative relationships with strategic partners.

Prior to joining McLane Foodservice, Hayes held financial management roles in both the software and business network industries. He began his distribution career with PepsiCo Food Systems as part of the finance team, and he progressed through roles of increasing scope after transitioning to the national accounts team. Hayes holds an undergraduate degree in finance and MBA from the University of Louisville.

“It’s an exciting time to move into this role and to build upon all the great work the team has done in recent years,” says Hayes. “I believe McLane Foodservice is well-positioned to support the needs of our customers today, as well as be the strategic partner they expect in the future.”

© 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.

Susan Adzick Promoted to Chief Operating Officer of McLane Foodservice

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, announced that Susan Adzick has been promoted to executive vice president and chief operating officer of McLane Foodservice, and in July of this year, Adzick will transition to president of McLane Foodservice.

“Susan Adzick is an experienced supply chain industry executive who is well respected by all who know and work with her,” says Tom Zatina, current president of McLane Foodservice. “I have the utmost confidence in knowing Susan will be a steward of the values of our business and keep our company a great place to work, a great place to trade and a great place to invest.”

Since joining McLane Foodservice in 2000, Adzick has held various leadership positions including her most recent role as senior vice president of sales and strategic relationships, which she has held since 2018. She has worked to elevate the McLane Foodservice brand to higher visibility within the industry, grow market share with existing brands and add new customers in the casual dining and fast casual segments. Over the last few years, Adzick provided the strategic direction, business development and customer relationship management for the entire portfolio of McLane’s foodservice business.

Additionally, Adzick serves on the National Restaurant Association Board of Directors, National Restaurant Educational Foundation Board of Directors as vice chair, Restaurant Leadership Conference Advisory Council and served on the Women’s Foodservice Forum (WFF) Board of Directors as chair in 2018.

Prior to joining McLane Foodservice, Adzick worked with PepsiCo as vice president of operations before being promoted to senior vice president, national accounts. She holds a Bachelor of Science degree in Biomedical Engineering and MBA, both from Vanderbilt University.

“McLane Foodservice is positioned to support the supply chain needs of our strategic partners today and tomorrow,” says Adzick. “I’m excited about helping to further shape the future of our business.”

© 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.

McLane Launches New Back Office Management Solution for Convenience Stores

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, announced the launch of a new back office management solution for convenience store retailers during the McLane National Trade Show (NTS).

The new solution is a one-stop-shop for retailers and all their technology needs. McLane has completed interfaces that communicate with three of the largest POS hardware providers in the industry, representing approximately 98% of the market (NCR RPOS, Gilbarco Passport and Verifone Ruby2).

McLane’s approach uses the industry-standard language called NAXML to share data with each POS hardware platform. This integration positions McLane to be a retailer’s complete back-of-house solution.

Benefits of the new back office solution include:

• Centralized price book management including perpetual inventory
• Ability to setup and manage distributors, stores, groups, retails and costs
• Fuel setup and management
• Item mix-match, combos, promotions, bundling and happy hour specials
• Age verification and category management
• Back office data can now be established with retailers directly from McLane — this data is often difficult to obtain from third party back-of-house companies
• Ability to reduce back office costs allowing more money to be spent elsewhere
• A monthly lease for this solution eliminates the need for costly software upgrades, thus freeing up capital to spend in other parts of the organization

Deon Johnson, VP of applications at McLane, unveiled the new back office management system at NTS, held at the Henry B. González Convention Center in San Antonio, TX during the Technology Conference.

“McLane leads the industry by providing unmatched customer technology offerings to c-stores,” said Johnson. “We can support retailers with end-to-end technology solutions with the new, integrated back-of-house solution.”

McLane is dedicated to providing its retailers with the latest in new technology to improve efficiency in all aspects of inventory control, ordering and item management. Rapid implementation and rollout mean that retailers can take advantage of cost-savings solutions now, not next year. The solutions are easy to use, and store employees are able to address informational needs without having to spend time on the phone seeking answers from others.

© 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 and Popeyes End Restaurant Distribution Deal

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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

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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.