Dive Brief:
- Alimentation Couche-Tard has opened a new distribution center in Otsego, Minnesota, according to a Wednesday announcement.
- This 266,000-square-foot facility, which will be operated by McLane, is the first of three expected to open in the coming months, according to the announcement. It will serve around 500 Circle K and Holiday c-stores in the upper Midwest.
- The new distribution facility is part of an agreement between Couche-Tard and McLane, announced in April, through which the latter will handle third-party logistic services for the retailer.
Dive Insight:
These distribution facilities will give Couche-Tard more visibility into and control over its supply chain. The Otsego center will supply national and private-label snacks, drinks, candy and nicotine products and other items that usually don’t get delivered directly to stores, according to the announcement. It will also prepare some items from Couche-Tard’s Fresh Food Fast foodservice program and will employ about 150 people.
"This facility is a key part of our effort to build world-class distribution capabilities that support our stores and deliver a more consistent and rewarding experience for our customers," said Trey Powell, senior vice president of global merchandising at Couche-Tard.
Couche-Tard anticipates opening a second McLane-operated distribution center in Hazelwood, Missouri, in December and the third and final one in Lockbourne, Ohio, in January 2026. Once all three are open, they will supply around 1,600 stores, bringing the retailer to 3,200 stores across North America that are supported by some type of self distribution.
"We're creating a more integrated and aligned supply chain, improving speed, accuracy, and availability, and executing our merchandising initiatives with greater quality and efficiency," said Powell.
