LAVAL, Quebec -- Core-Mark's loss will be McLane Co.'s gain as one of the largest convenience-store chains in the country moves distribution services to more than 2,000 of its stores from one supplier to the other.
Circle K parent Alimentation Couche-Tard has awarded distributor McLane Co. Inc. its supply-chain-services business in the eastern and midwestern United States, as reported in a McLane/CSP Daily News Flash.
McLane will begin serving 1,161 Circle K locations starting January 2017 and an additional 982 locations in January 2018, totaling 2,143 stores. In addition, Circle K has extended a multiyear agreement with McLane Co., Temple, Texas, to continue serving the 1,356 former Pantry locations in the Southeast.
“Circle K is well known and respected in the industry. They, like McLane, continue strategic growth throughout the United States to better meet the needs of their customers,” said Tony Frankenberger, president of McLane. “It is an honor to be chosen to service such a significant amount of the Circle K business and to expand our relationship with Circle K.”
In awarding the business to McLane, Couche-Tard ends a longtime contract with Core-Mark Holding Co., South San Francisco, Calif.
This will reduce the number of Circle K stores that Core-Mark serves by approximately 1,100, a 36% reduction, Core-Mark reported.
"We are disappointed that we did not retain all of the stores during this renewal process," Core-Mark president and CEO Thomas B. Perkins said, "but our longstanding partnership with this industry-leading retailer remains strong."
Core-Mark's stock price dipped nearly 15% following the news.