McLane lands Yum distribution deal for Taco Bell, KFC, Pizza Hut

McLane lands Yum distribution deal for Taco Bell, KFC, Pizza Hut

Unified Foodservice Purchasing Co-op LLC, the exclusive purchasing agent for Yum! Brands Inc., has signed a distribution deal that makes Temple, Texas-based McLane Foodservice Inc. the exclusive provider of products to Yum’s A&W, KFC, Long John Silver’s, Pizza Hut and Taco Bell restaurants.

Terms of the agreement were not disclosed.

Louisville-based Yum (NYSE: YUM) is one of the world’s largest restaurant companies, with 37,000 restaurants in more than 110 countries and territories. The company has nearly $11 billion in revenue last year 2009. It is the parent of Irvine’s Taco Bell Corp.

Yum filed the following disclosure with the U.S. Securities and Exchange Commission about the McLane deal:

Item 1.01

Entry into a Material Definitive Agreement.

On August 24, 2010, subsidiaries of Yum! Brands, Inc. (“Yum!”) entered into a Participant Distribution Joinder Agreement whereby they became bound by the terms and conditions of that certain Master Distribution Agreement (the “Master Distribution Agreement”), by and between Unified Foodservice Purchasing Co-op, LLC, which is the exclusive domestic purchasing agent of Yum! and the Yum! system of restaurants, and McLane Foodservice, Inc. (“McLane”). Under the Master Distribution Agreement McLane will distribute products to A&W, KFC, Long John Silver’s, Pizza Hut and Taco Bell retail outlets operated by Yum! subsidiaries and other Yum! franchisees (the “Operators”). The Master Distribution Agreement is effective as of January 1, 2011 and continues until December 31, 2016 unless earlier terminated pursuant to its terms, and, thereafter, automatically renews for additional one-year periods.

Subject to the terms and conditions of the Master Distribution Agreement, Operators (including subsidiaries of Yum!) that enter into Participant Distribution Joinder Agreements will be obligated to purchase from McLane, and McLane will be obligated to purchase from suppliers and resell and distribute to each participating Operator, substantially all of the proprietary and non-proprietary food, supplies, packaging, beverages, promotional and other items used or sold in each participating Operator’s retail outlets within the defined distribution area, which includes much of the U.S.

The Master Distribution Agreement and the Participant Distribution Joinder Agreement entered into by subsidiaries of Yum! will be filed as exhibits to Yum! Brands, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 4, 2010.


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Yum! Brands, Inc.

August 30, 2010

By: /s/ Scott Catlett

Name: Scott Catlett

Leave a Reply

Your email address will not be published. Required fields are marked *