Businessweek

Core-Mark Holding Company, Inc. engages in marketing fresh and broad-line supply solutions to the convenience retail industry in North America. The company provides sales and marketing, distribution, and logistics services. The company operates a network of 28 distribution centers (excluding 2 distribution facilities the company operates as a third party logistics provider) in the U.S. and Canada, which distribute a line of national, regional, and private label convenience store products to approximately 29,000 customer locations in 50 states in the U.S. and 5 Canadian provinces. Products The company distributes various products, including cigarettes, other tobacco products, candy, snacks, groceries, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and equipment, and health and beauty care products. Its fresh products include sandwiches, juices, salads, produce, dairy, and bread. The company also offers milk, fresh fruit, fresh baked goods, home replacement meals, and other fresh and natural products. Registered Trademarks The company has registered trademarks, including Arcadia Bay, Arcadia Bay Coffee Company, Cable Car, Core-Mark, Core-Mark International, EMERALD, Fresh and Local, Java Street, QUICKEATS, Richland Valley, SmartStock, Tastefully Yours, and COASTERS. Customers The company services traditional convenience stores, as well as alternative outlets selling consumer packaged goods in a convenient setting. Its traditional convenience store customers include major national and super-regional convenience store operators, as well as multi- and single-store customers. The company’s alternative outlet customers comprise various store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college bookstores, casinos, movie theaters, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products Acquisitions In 2012, the company acquired J.T. Davenport & Sons, Inc., a convenience wholesaler, located in North Carolina, which services approximately 1,800 customers in the 8 states of North Carolina, South Carolina, Georgia, Maryland, Ohio, Kentucky, West Virginia, and Virginia. Suppliers The company’s suppliers include Philip Morris USA, Inc. and R.J. Reynolds Tobacco Company. Seasonality The company generates slightly higher net sales and higher gross profits during the warm weather months (May through September) than in other times throughout the year. The company generated approximately 52% of its net sales during the second and third quarters of year ended December 31, 2012. Competition The company competes with McLane Company, Inc. (a subsidiary of Berkshire Hathaway Inc.). Regulation As a distributor of food products in the U.S., the company is subject to the Federal Food, Drug and Cosmetic Act and regulations promulgated by the U.S. Food and Drug Administration (FDA). A limited number of the over-the-counter medications that the company distributes are subject to the regulations of the U.S. Drug Enforcement Administration. In Canada, similar standards related to food and over-the-counter medications are governed by Health Canada. The company’s facilities are inspected periodically by federal, state, provincial and local authorities, including the Occupational Safety and Health Administration under the U.S. Department of Labor, which require the company to comply with certain health and safety standards to protect its employees. The company is also subject to regulation by various other federal, state, provincial, and local regulatory agencies, including the U.S. Department of Labor, which sets employment practice standards for workers; the U.S. and Canadian Departments of Transportation, which regulate transportation of perishable goods; and similar state, provincial and local agencies. History Core-Mark Holding Company, Inc. was founded in 1888.