7-Eleven Extends Distribution Deal

Published in CSP Daily News

McLane will remain key supplier to U.S. stores through early 2008

DALLAS -- 7-Eleven Inc. has signed an amendment with McLane Co. Inc. that extends the service agreement to supply 5,300 U.S. 7-Eleven stores for an additional two years. The existing service agreement is due to expire Jan. 31, 2006, and the amendment will extend the agreement through Jan. 31, 2008.

7-Eleven and McLane were able to negotiate terms that will provide enhanced benefits and improved service to 7-Eleven's stores, including requirements designed to improve on-time deliveries and in-stock levels to satisfy 7-Eleven's customers.

Committed to its business philosophies of retailer initiative and item-by-item management, 7-Eleven wanted a partner willing to redefine the standard distribution model, according to David Podeschi, senior vice president of merchandising for 7-Eleven, Dallas. 7-Eleven's extensive store base presents a unique challenge in terms of delivery of items, he said. McLane has a solid, longstanding track record with us, and has demonstrated the willingness to explore new logistics approaches to improve retailer initiative, our company's approach to retailing.

McLane Co. has enjoyed a relationship with 7-Eleven that dates back to 1975, and we are excited to be chosen to continue this opportunity to service their stores, said Terry McElroy, president of McLane Grocery Distribution, Temple, Texas. 7-Eleven has defined one of the most efficient models for distribution, and the McLane teammates are proud to continue to be associated with their success.

McLane provides distribution services to multiple industries throughout the United States. A wholly owned subsidiary of Berkshire Hathaway Inc., it delivers food and nonfood products to more than 50,000 customer locations around the world, including the convenience store, drug store, mass merchandise, wholesale club, quick-service restaurant and movie theater industries. The company operates 18 grocery divisions and 18 foodservice distribution centers, and an industry-specific software company. It operates several distribution centers, providing third-party logistics services to large multinational companies; as well as providing traffic management and control functions for these clients.