The Pantry, McLane Extend Distribution Pact
CARY, N.C. -- Kangaroo Express convenience stores will continue to do business with McLane Co. Inc.
The c-store chain's parent company, The Pantry Inc., signed a new distribution service agreement with McLane on March 25. The latest deal, which replaces a similar agreement dated Aug. 1, 2008, is expected to take effect in early May and remain in place until Dec. 31, 2019.
Under the new agreement, The Pantry will continue to purchase food and non-food general merchandise, including cigarettes and tobacco products, from Texas-based McLane. The pact also includes provisions related to product ordering and delivery, price and payment terms, and service standards that must be satisfied by McLane, according to a filing with the U.S. Securities and Exchange Commission.
During fiscal year 2013, The Pantry purchased 56 percent of its merchandise, including most grocery and tobacco products. That figure is not expected to change materially under the new agreement, the filing added.
Cary-based The Pantry Inc. operates 1,537 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.