Laval, Quebec-based Alimentation Couche-Tard continues its attempt for a hostile takeover of the convenience-store chain, leaving local suppliers to ponder their fate, should the deal go through.
Anderson Erickson Dairy (AE) of Des Moines, Iowa, has supplied milk to Casey's stores for more 40 years, according to the report. Would Couche-Tard continue the relationship?
"[image-nocss] For us a Canadian company coming in here, I don't know that they've ever heard of AE," Miriam Erickson Brown, president and CEO of the dairy, told KCCI.
And Erickson Brown fears AE wouldn't be the only one to suffer.
Burke Corp. in Nevada, Iowa, supplies all the pizza toppings and deli meats for Casey's stores, and there are dozens of other examples.
"They do a lot of business with local homegrown businesses just like AE and they tell us, and they tell me, they seek out Iowa businesses to work with and partner with, and certainly we've seen that," said Erickson Brown.
Casey's officials told KCCI that they work with about 62 different Iowa-based suppliers. Last year, Casey's said those partnerships were worth more than $90 million in business.
The impact of a big change at Casey's could also change how the company gives back to the community.
"I think there's no denying that if a company's local, it tends to take a greater interest in the local community," said Barry Griswell, former chairman and CEO of the Principal Financial Group.
That's not to say a company based outside of Iowa wouldn't be as giving, but Griswell said a local company feels a greater responsibility.
"They're more accountable, I think, to the community. They're in the community every day. They see people, they go to church, they go to synagogue with other people," said Griswell.
AE owners said that if that accountability is lost, the impact could be far-reaching.
"For all of us, we just need to stop and think, what would the impact be and how many other Iowa businesses such as AE are impacted through this?" said Erickson Brown.
Laval, Quebec-based Couche-Tard operates a network of 5,883 convenience stores located in 11 large geographic markets, including eight in the United States covering 43 states and the District of Columbia, and three in Canada covering all 10 provinces.
Casey's General Stores, based in Ankeny, Iowa, has 1,531 corporate stores in nine states.
(Click here for previous CSP Daily News coverage of the Casey's/Couche-Tard saga.)
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