EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

www.mclaneco.com www.saladosales.com
Total 2011 Retail & Foodservice Sales: $33.3 Billion + 1.8%
Percentage of Sales in Exclusive Brands: N/A
Principal Business: McLane, a major US supply chain services company for the grocery and
foodservice industries, operates some 40 distribution facilities, 22 of them for grocery and 18 for
foodservice customers. It is owned by Berkshire Hathaway Inc., Omaha, NB, a $143.7 billion
holding company (headed by billionaire Warren Buffett), overseeing diverse business interests
(property and casualty insurance; retail interests ($3 billion+ sales) in paint, home furnishings,
jewelry; as well as manufacturing interests. McLane serves some 38,000+ retail locations plus,
through third parties, a logistics operation in Brazil. The company also exports to 34 countries. Its
grocery unit focuses on: convenience stores, wholesale clubs, mass merchandisers, etc. The
company’s Salado Sales, Inc., Temple, TX, handles control label products. Its foodservice base,
located in Carrollton, TX, serves some 20,000+ restaurants, quick-service outlets, and movie
theaters.
EB Identities: CVP (health and beauty care, household chemicals, paper, general merchandise,
candy, etc.), Road-Tech (automotive chemicals, lubricants and accessories), Double S Ranch beef
jerky, grocery and snack items; Work Fare all-purpose gloves; etc.
EB skus: N/A
Profile: McLane, started in 1894 as a grocer, entered the wholesale trade in 1903. The company
was taken over by Walmart in 1990, but sold in May 2003 to Berkshire Hathaway, since Walmart
decided to concentrate on its retail business. Today, McLane collects 30% of its revenues from
Walmart stores. (Through Berkshire Hathaway’s Garan, a manufacturer/importer of children’s
apparel, some 90% of its sales go to Walmart as well) . McLane’s 2011 results in the retail
segment were modest--rescued by the company’s April 2010 acquisition of Kahn Ventures
(Empire Distributors and Empire Distributors of North Carolina, a wholesale distributor of
distilled spirits, wine and beer, operating eight distribution facilities). At year-end 2010, Kahn
acquired Horizon Wine & Spirits with two distribution facilities.) In McLane’s foodservice
business, 2011 sales popped upward by 7%. McLane International, which had sold its 100% stake
in McLane Polska (Poland), operating three distribution centers and 11 warehouses, to Eurocash, a
trading group in that country, continues to operate the IGA franchise in Poland (some 700+
stores). McLane’s Salado Sales division researches, develops and distributes quality control label
products, offered at 18 to 40% lower than national brands, delivering equal or better quality
products. UPDATE: In May 2012, McLane signed Family Dollar (also in this database) as a retail
customer, selling merchandise including refrigerated and frozen foods. July 2012, McLane agreed
to acquire Meadowbrook Meats Co., Rocky Mount, NC, one of the country’s largest customized
foodservice distributor to national restaurant chains. Meadowbrook, a $6 billion pork processor,
operates 35 distribution facilities.
Procurement Contacts: Phil Horton, General Manager.; Kirk Bailey, Category Manager; Laura
Moore, Private Label Category Manager at Salado Sales (Tel: 254-742-3699)