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McLane Company

From Alfawiki
McLane Company, Inc.
Company typePrivate
IndustryWholesale distribution, Supply chain
Founded1894 in Cameron, Texas, United States
FounderRobert McLane
Headquarters
Temple, Texas
,
United States
Area served
United States (primarily Southeastern US and Colorado), Brazil (one facility)
Key people
Drayton McLane Jr. (former leader)
ProductsGrocery distribution, Foodservice distribution, Beverage distribution, Distilled spirits wholesale (in select markets)
OwnerBerkshire Hathaway
ParentBerkshire Hathaway

McLane Company, Inc. is a United States-based wholesale supply chain enterprise that distributes goods to a variety of outlets, including convenience stores, discount retailers, wholesale clubs, drugstores, military installations, as well as fast-food and casual dining establishments nationwide. Additionally, it functions as a wholesale distributor of distilled spirits in specific markets.

The company’s operations are divided into three primary distribution sectors: grocery, food service, and beverage. Its retail clients are predominantly located in the Southeastern United States and Colorado.

Although Walmart is no longer the parent company, it continues to be McLane’s largest customer, representing roughly one-quarter of the company’s revenue in 2017.

Established in 1894 in Cameron, Texas, McLane’s corporate headquarters are now situated in Temple, Texas. The company manages 80 distribution centers for grocery and food service products across the country and maintains one facility in Brazil. Since 2003, McLane has been fully owned by Berkshire Hathaway.

History

Robert McLane began with a modest grocery store in Cameron, Texas, in 1894. By 1903, he had expanded into wholesale distribution, supplying grocery retailers using rail transport and wagons. The business experienced significant growth throughout Central Texas between the 1920s and 1940s.

In 1966, the company moved its base to Temple, Texas, shifting its focus toward warehouse operations designed to serve retail outlets such as convenience stores.

During Drayton McLane Jr.’s leadership starting in 1976, the firm extended its reach beyond Texas and achieved a national footprint by 1990.

In December 1990, Drayton McLane sold the company to Walmart Stores in exchange for 10.4 million shares of Walmart stock plus cash consideration.

McLane entered the foodservice market in December 2000 through the acquisition of assets from AmeriServe Food Distribution.

Berkshire Hathaway purchased McLane from Walmart in May 2003 for $1.45 billion.

In 2012, McLane broadened its foodservice offerings by acquiring Meadowbrook Meat Company (MBM).

Customers

McLane supplies various retail chains such as Walmart, Sam's Club, Walgreens, Pilot Flying J, Circle K, Wawa, ExxonMobil, Target, Love's, Kmart, Family Dollar, and the Army & Air Force Exchange Service (AAFES).

Its foodservice division caters to prominent restaurant chains affiliated with Yum! Brands: including Taco Bell, KFC, and Pizza Hut. Additional clients include Sonic Drive-In, Buffalo Wild Wings, Arby's, Del Taco, Denny's, Jack in the Box, Hardee's, Applebee's, and El Pollo Loco.

Specialty divisions and companies

McLane Company encompasses multiple specialized divisions and subsidiaries:

  • McLane Foodservice, Inc. provides food products and services to restaurants across the United States.
  • Salado Sales develops private label merchandise for McLane’s convenience store customers, offering items such as health and beauty products, photographic film, light bulbs, motor oil, and work gloves.
  • C.D. Hartnett, Inc. is a grocery wholesaler servicing food service businesses, convenience stores, and independent grocers within Texas, Kansas, Oklahoma, and Louisiana; it was acquired by McLane in 2004.
  • McCarty-Hull, Inc. operates as a grocery wholesaler based out of Amarillo, Texas; acquired by McLane in 2006.
  • Empire Distributors functions as a wholesale distributor of alcoholic beverages throughout the Southeastern United States; joined McLane’s portfolio in 2010.
  • MBM Foodservice is located in Rocky Mount, North Carolina.