YOUR GROCERY SUPPLY CHAIN ADVANTAGE IN ACTION

We provide grocery supply chain solutions for more than 36,000 convenience stores, mass merchants, Warehouse clubs, military operations and drug stores across the u.s. and brazil.

THE ADVANTAGES OF A GROCERY SUPPLY CHAIN SOLUTIONIn today’s retail grocery industry, pressures on profitability continue to grow. Every day, store owners face a number

of significant challenges, including rising gas and food prices, increased competition, constant staff turnover, tobacco

sales uncertainty, product proliferation, credit card fees and operational complexity. Maximizing revenues and profits

in this fast-paced, digital economy requires more than a distributor—it demands a nationwide, highly automated,

grocery supply chain solution.

McLane is your Supply Chain Advantage in ActionAs an industry leader, McLane has invested heavily in its end-to-end

grocery supply chain services. Our one-of-a-kind solution combines

unparalleled procurement resources and relationships, state-of-the-art

logistics, data- and analytics-based merchandising services and cost-

saving technology applications. The result: our customers are empowered

to buy better, sell smarter and profit more.

World-class distribution centersTo ensure customer orders are filled correctly and delivered on time, we have

invested more than $1 billion in our national network of 20 modern distribution

centers. In all our locations, we employ the most reliable and efficient end-to-

end automation systems and distribution infrastructure in the industry.

With over 8 million square feet of Warehouse space and 60 miles of automated conveyors, We can offer our customers the Widest array of products and ensure the highest levels of order accuracy and on-time delivery.

A SUPPLY CHAIN INFRASTRUCTURE YOU CAN COUNT ON

Pick-to-light technology: Tracking system that

provides real-time feedback on order progress in

addition to virtually eliminating selection errors.

Distribution center automation: State-of-the-art

automated systems that utilize pick-to-belt, product

accumulation and merge, and bar code scanning

technologies to ensure the most cost-efficient

productivity and UPC validation while minimizing

selection and shipping errors.

Tote content tracking: Scannable labels on the

container totes provide valuable information that

identifies product placement in shipping containers

by category and simplifies check-in at time of delivery.

The industry’s largest data infrastructure: Our

network of data centers provides McLane and

its customers with all necessary documentation

for financial reporting and compliance, in addition

to unique insights on product performance, sales

trends and customer buying patterns.

some of our innovative distribution center technologies include:

With over 1,300 tractors and 2,100 multi-temperature trailers in our fleet, We deliver more than 5.2 billion pounds of grocery products annually to locations throughout the u.s. and brazil.

Modern fleet. Friendly, professional drivers.McLane is committed to providing you with the best products, delivered with the highest degree of accuracy and safety. That’s why we utilize one of the industry’s most modern and largest private fleets, including 2,100 multi-temperature trailers to transport dairy and frozen products and other perishables at their optimum temperatures. And, we hire only the best drivers—experienced, friendly, professional and non-union. The McLane advantage for our customers: the very best on-time delivery, 99% fill rate and quality without compromise.

BUYING BETTERIS MORE THAN JUSTA COMPETITIVE PRICECompetitive prices are always important. However, so is the ability to make your purchasing decisions with ease and confidence.

Unsurpassed experience and nationwide buying powerTo effectively service more than 36,000 retail locations, we work closely

with thousands of manufacturers to offer the widest range of products to our

customers. In fact, we are one of the largest worldwide purchasers of products

in such key retail categories as tobacco, candy and salty snacks. This kind of

buying power means that we can assist you in getting the best manufacturer

pricing possible. Best of all, these low prices are available for all our customers,

regardless of whether you are a nationwide chain or a single store.

McLane Smart Handheld: In-store inventory ordering solution that enables retailers to place timely orders, take inventory and reduce out-of-stock conditions—all without Internet connectivity.

McLane Virtual Trade Show: Enables retailers to visit “booths” from dozens of leading manufacturers and see hundreds of new products without the expense, time loss or hassles of traveling to live trade shows.

Item Authorization and Management: Identifies, authorizes and manages products via the Internet for better accuracy and profitability.

Order Collection: Provides a flexible, intelligent approach for communicating orders between companies with different order platforms and ensures orders are filled accurately and completely.

Inventory Order Management: Enables headquarters to manage categories for individual stores and reduce overstocks of non-performing items by 25 percent.*

our technology applications that help you buy better include:

BUY BETTER

Accurate, easy ordering saves time, money and hasslesIn addition to dedicated account representatives, we offer a number of convenient technology applications to

streamline your buying processes, provide access to the hottest new products and deals, and ensure the highest

levels of order accuracy and in-stock items.

*Customer average based on recent data.

With smart handheld, store owners can print

new shelf tags on demand to spur impulse sales.

virtual trade show attendees can find exclusive

merchandising programs and get special one-time-only

pricing—all without leaving their desks.

SELLING SMARTER IS MORE THAN THE LATEST DEAL SHEET OR PROGRAMThese days, success in the retail grocery business requires a supply chain expert who can work hand-in-hand with your retail teams, plus offer tools to help you make the very best, informed decisions.

Category management professionals and proven processWith our highly experienced category management professionals, we’re ready

to help you in all merchandising and sales areas, from inventory and pricing

management to category analysis and product promotion. Whether it’s

tapping into the latest trends or leveraging lucrative new opportunities,

we can provide the valuable insights and tools your business needs to

optimize your product mix.

The most in-depth information resources and market insightsA key advantage of working with McLane is the depth of our information

resources and market insights. Our merchandising strategies are all based

on proven results, not marketing budgets. We employ the industry’s largest

convenience store data warehouse to help you compare your in-store sales

with those of more than 29,000 other nationwide locations. With this powerful

analytic tool, you can compare your sales and product movement with that

of other retailers on national, regional and local levels, as well as by individual

stores and specific items, to determine your best-mix product scenarios and

identify key selling opportunities.

The McLane Lab Store turns retail insights into selling power Of course, to be truly effective, you need to put these insights into action—and at our innovative Lab Store, we do just that. An indispensable tool for retail store owners, this one-of-a-kind store resembles a fully stocked retail environment in every detail to help customers visualize the best ways to merchandise the right products in the most profitable ways. Leveraging our extensive customer database, we’ll help you build precise, live-image planograms that can improve your product offerings and shelf placement. Plus, we’ll help you to develop new item and category pricing strategies that keep margins high while continually offering the newest, most attractive products.

Determine what to sell and the best ways to sell itGetting real-time insight into new products, item performance and sales trends is vital for any retailer. So we’ve also created specific technology applications to help manage the many daily responsibilities related to the sales and marketing of products.

SELL SMARTER

STORE GROWTH

ALTERNATIVE SNACKS

SALTY SNACKS

SWEET SNACKS

ENERGY SNACKS

MEAT SNACKS

OTHER ALTERNATIVE SNACKS

ALTERNATIVE SNACKS

CRACKERS

NUTS/SEEDS

OTHER SALTY SNACKS

PACKAGED POPCORN

CHIPS/PRETZELS/RINDS

SALTY SNACKS

COOKIES

SNACK CAKE/PASTRIES

SWEET SNACKS

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GROWTH %GROWTH $

TOTAL McLANE C-STORESJAN-AUG

2007

TOTAL McLANE C-STORESJAN-AUG

2006

STORELOCATIONS

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STORELOCATIONS

JAN-AUG2006

SALES $ AS VALUES

REVIEW CATEGORIES

our technology applications to help you sell smarter include:

Strategic Merchandising Solutions: A Web-based system that enables store owners to access updated category management information, order new or promoted products and download the latest planograms.

Item and Sales Analyzer: With this report viewing system, retailers can analyze product performance and sales trends on multiple levels to determine the best item mix for each location.

Electronic Customer Documents: This online system enables store owners to create and access important documents such as delivery manifests, high-value item sheets, customer credits (invoice or driver-issued) and store invoices for improved business operations and compliance.

Supplier Purchase Order Management: An alternative to EDI (electronic data interchange), this Web-based solution simplifies and streamlines how suppliers promote and distribute products.

at the lab store, you can analyze your in-store

sales results with those from 29,000 other

locations to stay current with the latest trends.

OUR INVESTMENTSAND INNOVATIONSGIVE YOU THE POWERTO PROFIT MOREFor more than 100 years, McLane has been committed to the success of our customers. Simply put, no other company can provide the variety of products, depth of resources, level of investment and strength of relationships necessary to help ensure our customers become more profitable.

Software automation ensures all parts of your business work together, profitably As a grocery retailer, dealing with thousands of SKUs, dozens of technology

applications and various front- and back-office accounting systems can be a

never-ending challenge. Fortunately, our dedicated, 250-person team of IT

professionals is ready to help. Not only do we provide the broadest range of

supported applications of anyone in the industry, but we can also ensure that

our technology services work with the enterprise applications—such as SAP,

PDI, Radiant and many others—already in place in other parts of your business.

Delivering innovative products that keep margins highAs you know, offering unique products at good prices is what keeps customers

coming back again and again. To that end, we’ve made a number of strategic

acquisitions that greatly expand and complement your traditional product

staples with the unique, high-margin SKUs that customers crave, including:

Control label products: You can choose from thousands of high-quality

products that deliver higher profits while providing your consumers with 20%

to 50% savings over comparable national brands.

Novelty items: These attractive items give your stores an easy way to

complement existing product lines and offer best-selling, point-of-sale

products from such leading brands as: Pugs Gear, Novelty Outfitters, Rock

River Traders and SNAP Lighters.

Unique supply chain solutions designed for your business needsCustom cold chain solutions: McLane offers the only custom cold chain

solutions in the industry that provide an unbroken, uninterrupted series of

storage and distribution activities that extends from the manufacturer to the

retail store. With this unique system, we can ensure that perishable items are

delivered with the highest levels of quality and safety—without compromise.

Third-party supply chain management: In addition, for retailers currently

operating with a self-distribution model, McLane provides an excellent

alternative to managing your own supply chain. We offer proven, third-party

supply chain management services that can not only lower your operating

costs, but also allow you to focus on other key areas of your business.

With our custom cold chain system and FRESH on the GO™ program, you can create

new incremental sales for your business while offering customers the widest variety

of fresh products, including:

Ready-to-eat saladsGourmet wrapsWhole fruitJuices, yogurts and smoothies

PROFIT MORE

Delivering applications that benefit your bottom lineFor today’s grocery retailers, managing the multitude of manufacturer

incentives can be a full-time job. To help keep your focus on serving

customers, we have created a number of powerful software applications that

ensure your orders are placed, inventory is managed correctly, compliance is

maintained and various rebates and credits are applied—automatically.

OUR TECHNOLOGY APPLICATIONS TO HELP YOU PROFIT MORE INCLUDE:

Automated Credits: A quick credit processing system that issues immediate credits (and issues a receipt) via a handheld system before the driver leaves the store.

Retailer Rebate Management: An online system that tracks and manages the many manufacturer rebates available to you and prints all documentation needed for timely reimbursements.

Clean Invoice: A billing system that provides better gross margin management by accurately invoicing for products that were billed and actually delivered.

OUR NEW SOFTWARE SUITE MAkES IT EASIER TO BUY BETTER, SELL SMARTER AND PROFIT MORE.

Premium Order Management Suite: A powerful suite of applications that automates ordering, compliance and inventory management. Premium Order applications include:

Default Order: Places automatic orders based on store’s purchase history to eliminate worries about orders not being made.

Automated Supplier Incentive Manager: Ensures retailer compliance on supplier’s critical items to streamline merchandising payments.

Customer Managed Inventory: Generates orders automatically based on how products have sold to customers in each store.

Store-level Receiving: Allows stores to get immediate access to delivery information and receiving counts with the ability to forward to the corporate office.

Store-level Reclamation: Streamlines the reclamation process by identifying the items that can be returned for credit and electronically sends files for processing.

Store-level Inventory: Allows stores to electronically count inventory by category and instantly forward inventory counts to the corporate office.

©2010 McLane Company, Inc. All rights reserved. FRESH on the GO is a trademark of McLane Company, Inc.

YOUR SUPPLY CHAIN ADVANTAGE IN ACTIONSince 1894, McLane has made an unmatched investment in the profitability

of our customers. With our powerful combination of retail supply chain and

category experts, world-class infrastructure and leading-edge technology

services, we enable our customers to move beyond price-based competition

and maximize the profitability of their retail business.

To find a McLane representative in your area and learn more about how McLane can help your grocery business buy better, sell smarter and profit more, call (800) 299-1401 or visit us at www.mclaneco.com