SOUTH SAN FRANCISCO, Calif. -- A traditional convenience-store distributor will expand its channel reach through a new deal with Wal-Mart.
Core-Mark Holding Co. Inc. has signed a three-year supply agreement to service approximately 530 Wal-Mart Neighborhood Markets and Supercenter stores in five western states (Arizona, California, New Mexico, Nevada and Utah).
The deal may be extended for two one-year periods by mutual agreement of the parties.
Core-Mark will be the primary distributor to these stores for candy, tobacco and certain snack foods. Candy will be the largest product category serviced under the new arrangement and is expected to increase the company's overall sales by approximately 40% to 50% for this category.
The anticipated start date for service under this agreement is May 2017.
"We are very excited to be teaming up with the world's largest retailer to supply high-volume products to hundreds of their stores. This strategic partnership between our two companies will create a supply chain with more frequent deliveries than offered to these stores today," said Thomas B. Perkins, president and CEO of Core-Mark.
Bentonville, Ark.-based Wal-Mart Stores Inc. has approximately 11,500 stores of various formats under 72 banners in 28 countries.
Core-Mark is a marketer of fresh and broad-line supply solutions to the retail convenience-store industry in North America. Founded in 1888, it offers a range of products, marketing programs and technology solutions to more than 45,000 customer locations in the United States and Canada through 30 distribution centers (excluding two distribution facilities the company operates as a third-party logistics provider). The South San Francisco, Calif.-based company services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products.
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