McLane is an American wholesale supply chain company that distributes grocery and non-food stores to supermarkets, discount retailers, wholesale clubs, drugstores, military bases, fast food restaurants and casual dining restaurants across the United States. It is also a wholesale distributor of refined beverages, wines and beers in several US states. McLane is organized into three segments: foodstuff distribution, serving approximately 49,000 retail locations, distributing food services, serving around 36,500 chain restaurants, and beverage distributions, serving approximately 24,900 retail locations in the Southeast and Colorado.
Walmart, McLane's former holding company, remains its largest client with about 25% of its 2017 earnings. Other important customers include 7-Eleven and Yum! The brands, each contributing about 11% of its 2017 earnings.
McLane is a wholly owned subsidiary of Berkshire Hathaway since 2003.
Founded in 1894 in Cameron, Texas, McLane Company has grown from a local merchant into an international distribution and logistics company. The company is headquartered in Temple, Texas, and operates 80 food and service distribution centers across the country, as well as one in Brazil.
Video McLane Company
Main financial figures
Food and food services businesses generate high sales volumes but very low profit margins. From Berkshire Hathaway 2017 (and 2004) annual reports, the main figures are as follows:
Note: pre-tax income includes $ 39 million from asset sales in 2017 and $ 19 million from sales of subsidiaries in 2015. The first year is 2004 because it is Berkshire Hathaway's first full year of ownership. Not all data is publicly available.
Maps McLane Company
Company operations
McLane Company operates 21 wholesale distribution centers and 18 food service distribution centers across the country.
President & amp; CEO of McLane Company since 1995 is W. Grady Rosier.
History
McLane started in 1894 when Robert McLane opened a small grocery store in downtown Cameron, Texas. In 1903, it grew into wholesale trade, supplying grocery stores in neighboring towns via trains and horse-drawn carriages. During the 1920s through the 1940s, with the advent of powerful cars and highway systems, the business grew rapidly to cover much of Central Texas.
In 1966, the McLane Company moved its operations to Temple, Texas, and began adjusting its warehouse operations and distribution methods to better accommodate the retail market, including the rapid growth of the supermarket.
McLane Company pursued an expansion plan outside Texas starting in 1976 under the leadership of Drayton McLane, Jr., the third generation of family leadership. In 1990, the company has established a national presence.
In December 1990, Drayton McLane sold McLane Company to Wal-Mart Stores, Inc. for 10.4 million Wal-Mart shares and an undisclosed amount of cash.
McLane Company entered the foodservice business in December 2000, when it acquired certain assets from AmeriServe Food Distribution to create McLane Foodservice.
In May 2003, Berkshire Hathaway acquired McLane Company from Wal-Mart for $ 1.45 billion.
In 2012, McLane opened its 21st grocery distribution center in Republic, Missouri. It is a 350,000 square foot building with advanced technology including the Schaefer Case Picking system. Their 18th and latest food service distribution center was built in Manassas, Virginia in 2010.
In 2012, McLane acquired Meadowbrook Meat Company (MBM), a Foodservice distributor.
In 2017, McLane plans to open its 22nd storeholder distribution center in Findlay, Ohio.
Customer
Retail chains that accept one or more product categories from McLane include Wal-Mart, Sam's Club, Walgreens, Pilot/Fly J, Kangaroo Express, Circle K, WaWa, 7-Eleven, ExxonMobil, Target Shop, Love, Kmart, Hess, Family Dollar, and AAFES.
The restaurant chain provided by McLane Foodservice is Yum! Brand family concept: Taco Bell, KFC, Pizza Hut, and former Yum Concept Long John Silvers/A & amp; W Restaurant. They also provide food for Sonic in August 2010, Buffalo Wild Wings, and Applebees.
Special and corporate divisions
McLane Company has the following special divisions and subsidiaries:
- McLane Foodservice, Inc. is a food and foodservice supplier to restaurants across the US, serving more than 20,000 customers.
- Salado Sales develops and markets personal label products to McLane supermarket customers. The lines include various health and beauty care items, flash films and products, light bulbs, motor oil, and work gloves.
- C.D. Hartnett, Inc. is a wholesale wholesaler based in Weatherford, Texas. CD. Hartnett provides food service accounts, convenience stores, and independent traders in Texas, Kansas, Oklahoma and Louisiana. The McLane Company acquired C.D. Hartnett in 2004.
- McCarty-Hull, Inc. is a wholesale wholesaler based in Amarillo, Texas. McLane acquired McCarty-Hull in 2006.
- The Imperial Distributor is a large alcoholic beverage distributor in the Southeast AS. In 2010, McLane Company bought the Empire.
- Food Service MBM, Rocky Mount, NC
References
Source of the article : Wikipedia
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