McLane Company, Inc. Profile 4747 McLane Pkwy. Temple, TX 76504 United States Phone: 254-7717500 Fax: 254-7717244 http://www.mclaneco.com WELCOME Hoover's is the business information resource that delivers a unique combination of up-to-date data, broad coverage, and comprehensive information about companies, decision makers, and industries - along with powerful tools to put this information to work for your business. Hoover's offers everything you need to successfully: * Identify and evaluate potential sales leads, markets, and business partners * Deepen relationships with current customers * Assess competitive risks and eliminate threats * Build presentation-ready reports and customized lists of companies, industries, and decision makers Unlike other business information providers, only Hoover's has a full-time, in-house editorial and research team dedicated wholly to investigating, pinpointing, authenticating, and analyzing data to provide the most comprehensive, up-to-date information available on companies, industries, and executives. HIDDEN TEXT TO MARK THE BEGINNING OF THE TOC 866-541-3770 • HOOVERS.COM Nov 02, 2010 • PAGE i Table of Contents Company Overview 1 Key Information 1 Key Financials 1 Key People 2 Company Description 3 Industry Information 4 People 5 People 5 Biographies 7 W. Grady Rosier 7 Competition 8 Competitors List 866-541-3770 • HOOVERS.COM 8 Nov 02, 2010 • PAGE ii Company Overview 4747 McLane Pkwy. Temple, TX 76504 United States Phone: 254-7717500 Fax: 254-7717244 http://www.mclaneco.com You might say this company makes it convenient for stores and restaurants to get food. McLane Company is one of the largest wholesale suppliers of food products in the US, serving more than 60,000 retail stores and foodservice operators from about 40 distribution centers. Its grocery and retail distribution division serves convenience stores, drug stores, and mass merchants, including Wal-Mart. The company's McLane Foodservice division delivers food, paper products, and other supplies to chain restaurants and other foodservice businesses. McLane also offers logistics and supply chain management services to other customers. The company was founded in 1894 and is owned by Warren Buffet's Berkshire Hathaway. Key Information DUNS Number Location Type Subsidiary Status Manufacturer Company Type Ultimate Parent Ultimate Parent DUNS Immediate Parent Immediate Parent DUNS Plant/Facility Size (sq. ft.) Owns / Rents Foreign Trade Accountant Total Employees 1-Year Employee Growth Employees At This Location Year of Founding or Change in Control Primary Industry Primary SIC Code Primary NAICS Code Tradestyle Latitude/Longitude 009830555 Headquarters TX No Subsidiary Berkshire Hathaway Inc. 001024314 110,000.00 Owns Importer / Exporter Deloitte & Touche LLP 14,300 660 1894 1358:Foodservice Contractors 51410000:Groceries, general line 424410:General Line Grocery Merchant Wholesalers McLane 31.15875 / -97.3666 Key Financials Fiscal Year-End Sales ($ M) 1-Year Sales Growth Net Income 1-Year Net Income Growth Total Assets Market Value R&D Advertising Prescreen Score 866-541-3770 • HOOVERS.COM December $31,133.61M -$0.00M -----Low Risk Nov 02, 2010 • PAGE 1 Key People Name Title Mr. W. Grady Rosier President and CEO Mr. Kevin J. Koch VP Accounting, Tax, Finance, and Treasurer Mr. John Anderson Chief Risk Officer Mr. James L. (Jim) Kent EVP Administration Mr. Tony Frankenberger VP Merchandising, Grocery Distribution Mr. Len Mewhinney VP, General Counsel, and Secretary Mr. George Bolts President, McLane Carolina and Mid-Atlantic Divisions Mr. Scott Braden President, Southwest and High Plains Divisions Mr. Ron Clark President, Southeast, Southern, and Dothan Divisions Ms. Penny Echelberger President, Information Systems 866-541-3770 • HOOVERS.COM Nov 02, 2010 • PAGE 2 Company Description McLane stepped up to the bar in 2010, when it acquired spirits, wine, and beer distributor Kahn Ventures in April. According to Buffet, the acquisition is part of the shared vision of Berkshire, McLane, and Kahn to develop new innovation opportunities and to grow and lead the beverage industry. Gaining access to resources and operational best practices in the beverage distribution arena, McLane is now positioned for further growth in the sector. Kahn's holdings include Empire Distributors and Empire Distributors of North Carolina. The Empire companies have accounts in both North Carolina and Georgia. As a dominant player in the wholesale supply business, McLane's grocery division competes in a league of giants including C & S Wholesale, Nash-Finch, and Core-Mark, while its foodservice unit fights for business with such industry leaders as SYSCO, U.S. Foodservice, and Performance Food Group. Wholesale distribution continues to be a highly fragmented industry, however, meaning the company must also compete with a patchwork of regional and local suppliers. Mega retailer Wal-Mart accounts for about a third of McLane's revenue. East coast convenience store chain Wawa is also major customer. The company has been focused on cutting expenses and streamlining its supply chain operations. With generally low profit margins, McLane depends on maintaining a high volume of sales and quick turnover of inventory. It has historically expanded the business through acquisitions targeting regional competitors, but McLane's appetite for new purchases has tapered off in recent years. Its last major acquisition came in 2006 when it bought convenience-store supplier McCarty-Hull. McLane's foodservice division expanded its client roster in 2009, inking a supply agreement with Panda Express operator Panda Restaurant Group. The agreement covered about 200 Panda locations in Texas and Arizona. McLane Foodservice also supplies some 17,000 restaurants that are part of YUM! Brands' quick-service portfolio. Starting as a family-owned grocery store, McLane expanded into wholesale distribution in the early 1900s. The McLane family, including Houston Astros owner Drayton McLane, sold the business to Wal-Mart in the 1990s. Berkshire Hathaway later acquired McLane Company in in 2003 for about $1.5 billion. 866-541-3770 • HOOVERS.COM Nov 02, 2010 • PAGE 3 Industry Information Hoover's Industries > Food > Foodservice Contractors ( primary ) > Foodservice Suppliers > Food Wholesale Distributors > Beverages > Bottling & Distribution > Transportation Services > Logistics Services > Warehousing Services Primary SIC Code 51410000 : Groceries, general line Primary NAICS Code 424410 : General Line Grocery Merchant Wholesalers Denotes In-depth Industry Insight by Hoover's Editorial Staff 866-541-3770 • HOOVERS.COM Nov 02, 2010 • PAGE 4 People Employees Title Name Age Salary Bonus President and CEO VP Accounting, Tax, Finance, and Treasurer Chief Risk Officer EVP Administration VP Merchandising, Grocery Distribution VP, General Counsel, and Secretary President, McLane Carolina and MidAtlantic Divisions President, Southwest and High Plains Divisions President, Southeast, Southern, and Dothan Divisions President, Information Systems President, Professional Datasolutions President, Pacific Division Regional VP, Atlantic Region President, Grocery Distribution President, McLane Foodservice Media Contact Manager Human Resources, Information Systems Executive Director General Manager Of McLane Foodservice Inc S Atlanta Ga Distribution Center Director-internal Audit Director-sales Tax Director Director Applications; Information Technology Security Credit Mgr; Director Finance Director-safety Director-human Resources Director Application Development; Director Management Information Systems Senior Tax Manager Mr. W. Grady Rosier Mr. Kevin J. Koch 61 --- --- Mr. John Anderson Mr. James L. (Jim) Kent Mr. Tony Frankenberger ---- ---- Mr. Len Mewhinney Mr. George Bolts --- --- Mr. Scott Braden -- -- Mr. Ron Clark -- -- Ms. Penny Echelberger Mr. Greg Gilkerson --- --- Mr. Paul Souza Mr. Dave Testroet Mr. Mike Youngblood Mr. Thomas (Tom) Zatina Ms. Neftalia Garcia Ms. Milinda Sill ------- ------- Mac Longoria Darrell Briscoe --- --- Greg Hall John Hanson Kathy Hennig Dean Johnson ----- ----- Mr Neal Mayes Jose Morales Carla Watts Tom Webb ----- ----- Tom Anderson -- -- 866-541-3770 • HOOVERS.COM Nov 02, 2010 • PAGE 5 Title Name Edi Manager Account Manager Project Manager Merchandising Systems Assistant Manager Controller McLane Eastern Inc Manager Information Technology Support Manager Manager Architecture/support Merchandising Manager Manager Of Retail Services Manager Architecture And Support Associate General Counsel; Information Technology Manager Manager Organization Development Account Manager Information Technology Manager Ec Manager Fleet Manager Product Manager Talent Acquisition Manager Natioanl Manager Tobacco Products Associate Lawyer General Counsel; Information Technology Manager Comp Mgr 866-541-3770 • HOOVERS.COM Age Salary Bonus Danielle Belew Ed Bradac Coy Chambers Arthur Colvin ----- ----- Mr Chris Cook Shawn Dach --- --- Tracy Dixon Nathali Donaho Dick Dvoracek David Elkins Roger Flory Luis Garcia ------- ------- George Garcia Darlene Graves Billy Hlavinka Beckey James Mr Doug Lansford David Louth Stuart Masters Mr John Mayer Bart McKay ---------- ---------- Keith Morrison -- -- Nov 02, 2010 • PAGE 6 Biographies W. Grady Rosier, Age 61 Title held since 2008 : Director Current Company Titles 2008 - Present : Director Other Company Affiliations Director, Tandy Brands Accessories, Inc. Past Company Affiliations Director, Evergreen Energy Inc. Biography W. Grady Rosier was appointed to our Board effective December 1, 2008. Mr. Rosier has been the president and CEO of McLane Company, Inc. (¿McLane¿), a supply chain services company, since 1995. Prior to that date, Mr. Rosier has held various senior management roles since joining McLane in 1984. Mr. Rosier is the lead director of Tandy Brands Accessories, Inc. Within the last five years, Mr. Rosier was also a director of Evergreen Energy, Inc. Source : Proxy, March 19, 2010 866-541-3770 • HOOVERS.COM Nov 02, 2010 • PAGE 7 Competitors List Company AMCON Distributing Associated Wholesale Grocers Ben E. Keith C&S Wholesale (Top Competitor) Core-Mark (Top Competitor) Eby-Brown Golden State Foods Gordon Food Service GSC Enterprises H. T. Hackney MAINES Meadowbrook Meat Company Nash-Finch Performance Food Reinhart FoodService SUPERVALU SYSCO (Top Competitor) U.S. Foodservice Wakefern Food 866-541-3770 • HOOVERS.COM Gross Revenue Net Profit Margin Net Operating Cash Flow $907.95M $6,900.00M -$19,000.00M $6,531.60M $4,011.00M $4,000.00M $0.00M --$3,000.00M -$5,212.65M --$40,597.00M $37,243.50M $19,810.00M $11,700.00M 0.87% ---0.41% -------(0.05%) --(3.10%) 3.17% --- $17.88M ---$33.10M -------$102.37M --$1,474.00M $885.43M --- Nov 02, 2010 • PAGE 8