General Merchandise/HBC

K & G Extends McLane Deal

Distribution agreement will help with new programs

LONE TREE, Colo. -- K & G Stores Inc. has extended its service agreement with McLane Co. Inc.

K & G Stores, Lone Tree, Colo., is a privately held company that owns or operates some 63 corporate gas station locations in Colorado and Oklahoma as well as multiple dealer locations in Colorado.

Michael Haynes, vice president of sales and operations for K & G, said, "McLane has helped grow our business with good response, good merchandising and overall good service. Extending the service agreement will help us expand, especially [image-nocss] with the 31 new BP locations in Colorado."

K & G has been a marketing leader with its Shell MSO and Conoco convenience stores and is currently planning some innovative programs for 2006 that the company said will make its locations a first-stop destination for customers looking for unique programs and products.

"McLane's goal is to continue to help K & G reach their business goals and we share K & G's dedication and commitment to the convenience store industry," said Stuart Clark, President of McLane's Western division, Longmont, Colo.

K & G operates 36 corporate Conoco locations, 19 Shell MSO locations and numerous dealer-operated locations in Colorado, as well as eight corporate Phillip 66 locations in Oklahoma. It maintains clean, well-stocked stores, with competitive pricing and coffee, cappuccino and fountain programs. K & G is aggressively acquiring new locations for expansion and plans are in the works to extend its foodservice program.

Temple, Texas-based McLane provides distribution services throughout the United States, delivering food and nonfood products to more than 50,000 customer locations, including the convenience store, drug store, mass merchandise, quick service restaurant and movie theater industries. It operates 19 grocery distribution divisions and 18 foodservice distribution centers as well as an industry specific software company. McLane is a wholly owned subsidiary of Berkshire Hathaway Inc., Omaha.

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