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About Alimentation Couche-Tard
Alimentation Couche-Tard Inc. engages in the sale of tobacco products and alternative tobacco products, beer, wine, beverages, fresh food offerings (including quick service restaurants), candy and snacks, grocery items, car wash services, other services, and road transportation fuel.
In December 2020, the company acquired all the issued and outstanding shares of Convenience Retail Asia (BVI) Limited (Circle K HK), an important convenience store operator in the Hong Kong Special Administrative Region of the People's Republic of China.
The company operates convenience stores across North America, Europe, and Asia.
Furthermore, under licensing agreements, close to various stores are operated under the Circle K banner in 14 other countries and territories (Cambodia, Egypt, Guam, Guatemala, Honduras, Indonesia, Jamaica, Macau, Mexico, Mongolia, New Zealand, Saudi Arabia, the United Arab Emirates, and Vietnam).
The company offers fast and friendly service, providing food, hot and cold beverages, car wash services, and other high-quality products and services, including road transportation fuel.
Worldwide Network
The company’s store network includes 14,222 sites in three markets:
North America
The company is the Canadian leader in the convenience store industry and the largest independent convenience store operator in the United States.
Europe
The company is a leader in convenience store and road transportation fuel in Scandinavia (Norway, Sweden and Denmark), Ireland, the Baltic countries (Estonia, Latvia and Lithuania), and has an important presence in Poland and an emerging presence in Russia.
International
The company operates a network of company-operated convenience stores in Hong Kong. It also operates stores in 14 other countries and territories operating under the Circle K trademark through licensing agreements.
Areas of Business
The company has three areas of business, such as merchandise and services, road transportation fuel, and other.
Merchandise and Services Business
The company sells a broad selection of in-store merchandise and services that are designed to appeal to the convenience needs of its customers. The company also has wholesale sales of merchandise and goods to certain independent operators and franchisees.
Service revenue includes fees from automatic teller machines, the sale of calling cards and gift cards, revenue from car washes, commission on the issuance of lottery tickets and money orders, fees for cashing cheques, as well as the sale of postage stamps and bus tickets. Services revenue also includes franchise fees, license fees from affiliates, royalties from franchisees and commissions from agents.
North America
The company’s North American proprietary brands include Circle K Premium Coffee, Favorites, Favourites, Nos Favoris, Simply Great Coffee, Café tout simplement bon, Sloche, Froster, and Polar Pop. Products in North America are generally supplied to the company operated stores in one of the following ways:
A large part of the company’s deliveries for Québec, Arizona and Texas are channeled through distribution centres that the company owns and operates in Laval, Québec; Tempe, Arizona; and San Antonio, Texas.
Core-Mark International Inc. (Core-Mark) provides management services to the distribution centres in Arizona and Texas. It is also the supplier for many of the company’s in-store products in Western and Central Canada, and the wholesale supplier for stores in its Rocky Mountain and West coast divisions.
The company uses McLane to distribute merchandise to the majority of stores in its Northern Tier, Midwest, Great Lakes, Heartland, South Atlantic, Southeast, Costal Carolina, Florida and Gulf Coast divisions. The company uses TRA Atlantic to distribute merchandise in the Atlantic provinces.
The rest of the merchandise is delivered directly to the stores by the manufacturers or distributors.
Europe
The company sells proprietary branded food items under its Circle K, Made To Go, Simply Great Coffee, Froster, and Real HOT DOGS trademarks. The company all sells third-party fountain drinks under the Polar Pop trademark internationally. The company also sells car care products under its Circle K brand in all countries.
The company uses independent wholesalers as its main distributor in Europe. These include Engros Partners, Axfood, Reitan, Eurocash, Iglotex and Mateus for Norway, Sweden, Denmark, and Poland; and Musgrave for Ireland.
In the Baltic countries and Russia, the company uses local third-party logistics providers who purchase, store, and deliver products to the stores. These include Smarten in Estonia, BLS and NNL in Latvia; Mercado in Lithuania; and Megapolis in Russia.
Some European manufacturers, particularly those that produce ice cream, beer and soft drinks, have their own direct distribution.
Road Transportation Fuel Business
The company is a retail seller of road transportation fuel at full-service and automated sites. As a wholesaler, the company purchases and resells road transportation fuel to certain independent store operators, and makes nonretail bulk sales to customers with their own storage facilities.
The company sells road transportation fuel at 8,860 (89%) of the company operated stores, including full-service and automated sites. The company sometimes purchases road transportation fuel and sells it to certain independent store operators. The company also makes non-retail bulk sales to customers with their own storage facilities.
North America
The company buys road transportation fuel from major oil companies, independent refiners and resellers mainly under supply agreements.
The company resells the fuels to its customers at a profit through the company operated stores, under either:
One of the company’s brands, such as Couche-Tard, Mac’s, and Circle K.
The brand names of major oil companies, such as ExxonMobil (Esso, Mobil, and Exxon), Shell, Valero, BP, Marathon, Irving and Phillips 66.
The company makes other fuel deals to independent retailers. It owns and operates fuel terminals in Alabama, Minnesota and Arizona. A tanker truck distribution system supplies its sites with road transportation fuel. The company’s sites are supplied by trucks owned and operated by itself or by external hauliers.
Europe
The company sells road transportation fuel at full-service and automated retail sites, and makes non-retail bulk sales to customers with their own storage facilities.
Petrol and diesel are sold under the company’s miles and milesPLUS, the Circle K and Ingo brands. In Russia, fuels are branded with Fortis, a local private label brand.
The company’s fuel business in Europe makes bulk sales of fuels to industrial and commercial customers like hospitals, car rental fleets, road construction crews, bus services, factories and independent resellers or retailers.
The company supplies its network in Europe using multiple global and regional oil companies or refiners, mainly under supply agreements.
The company owns and operates fuel terminals in Scandinavia, Latvia, Lithuania, and Ireland, which allow the company to secure competitive supply terms, optimize its distribution, and be reliable and efficient in key areas of the fuel value chain.
A tanker truck distribution system supplies the company’s sites and wholesale customers with road transportation fuel. Most of its sites are supplied by trucks that are owned and operated by external hauliers, though the company also owns and operates some trucks. A number of its wholesale customers purchase fuel products directly from its terminals and depots using their own transportation systems.
Other Business
The company sells stationary energy and aviation fuel. It also earns rental income from operating leases for certain lands and buildings it owns and leases, as well as car rental revenue.
In Europe, the company also sells stationary energy and home heating oil. In Ireland, it also sells aviation fuel products to airlines, air charter and cargo companies. Other revenues also include rental income from operating leases for certain land and buildings that the company owns or leases, as well as car rental revenue.
Real Estate and Leases
The company owns more than 4,900 lots and 5,800 buildings. It also leases a significant number of sites using conventional leases to rent stores, land, equipment and office buildings.
In North America, stores range from approximately 900 to 6,000 square feet. Real estate leases are generally for primary terms of five to 20 years, usually with options to renew.
In Europe, stores range from approximately 1,500 to 3,500 square feet. In Hong Kong, stores range from approximately 200 to 2,000 square feet.
North America
The company’s North American network includes company operated and franchised stores that operate under various trademarks (Circle K, Couche-Tard, Mac’s, Kangaroo, Kangaroo Express, On the Run, Dairy Mart, Corner Store, and Holiday); and affiliated programs that operate under various banners, such as Provi-Soir, 7-jours, Becker’s, Daisy Mart, and Winks.
Canada
The company’s Canadian network has four business units, organized by geographic region:
Québec East and Atlantic: Includes East of Québec, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador. Includes 361 sites (353 company operated and 8 franchise and other affiliates).
Québec West: Includes West of Québec. Includes 657 sites (456 company operated, 2 company owned, dealer operated, and 199 franchise and other affiliates).
Central Canada: Includes Ontario. Includes 795 sites (680 company operated and 115 franchise and other affiliates).
Western Canada: Includes British Columbia, Alberta, Saskatchewan, Manitoba and Northwest Territories. Includes 298 sites (298 company operated).
The United States
The company’s network in the United States has 14 business units, organized by geographic region, which includes franchise business:
Heartland Region (including 50% of the sites operated through a joint venture with RDK Ventures LLC): Includes Illinois, Iowa and Missouri. Includes 353 sites (328 company operated, 8 company owned and dealer operated, and 17 dealer owned and dealer operated).
The Midwest Region: Includes Indiana, Kentucky, Ohio and Tennessee. Includes 461 sites (430 company operated, 9 company owned and dealer operated, 2 dealer owned and dealer operated, and 20 franchise and other affiliates).
Great Lakes Region: Includes Maine, Maryland, Massachusetts, Michigan, New Hampshire, New York, Ohio, Pennsylvania, Vermont and West Virginia. Includes 478 sites (478 company operated).
Northern Tier: Includes Alaska, Idaho, Michigan, Minnesota, Montana, North Dakota, South Dakota, Washington, Wisconsin and Wyoming. Includes 544 sites (413 company operated, 9 company owned and dealer operated, 22 dealer owned and dealer operated, and 100 franchise and other affiliates).
Coastal Carolinas Region: Includes North Carolina, South Carolina and Virginia. Includes 468 sites (404 company operated, 2 dealer owned and dealer operated, and 62 franchise and other affiliates).
Southeast Region: Includes Georgia, North Carolina, South Carolina, New Jersey, Connecticut and Delaware. Includes 574 sites (396 company operated, 1 company owned and dealer operated, 1 dealer owned and dealer operated, and 176 franchise and other affiliates).
South Atlantic Region: Includes Florida and Georgia. Includes 401 sites (401 company operated).
Florida Region: Includes Florida and 627 sites (510 company operated, 1 dealer owned and dealer operated, and 116 franchise and other affiliates).
Gulf Coast Region: Includes Alabama, Arkansas, Louisiana, Mississippi and Florida Panhandle. Includes 623 sites (538 company operated, 2 dealer owned and dealer operated, and 83 franchise and other affiliates).
Rocky Mountains Region: Includes Colorado, Missouri, New Mexico, Oklahoma and Texas. Includes 428 sites (378 company operated and 50 franchise and other affiliates).
Texas Region: Includes Texas and 712 sites (686 company operated and 26 franchise and other affiliates).
Grand Canyon Region: Includes Arizona and Nevada. Includes 644 sites (642 company operated and 2 franchise and other affiliates).
West Coast Region: Includes California, Hawaii, Oregon and Washington. Includes 837 sites (224 company operated, 65 company owned and dealer operated, 252 dealer owned and dealer operated, and 296 franchise and other affiliates).
Europe
The company’s network in Europe has 10 business units, organized by geographic region, which includes company operated and franchised stores that operate under the brands Circle K; and automated sites that operate under the brands Ingo and 1-2-3.
Denmark: Includes 438 sites (424 company operated and 14 dealer owned and dealer operated) and 212 automats.
Estonia: Includes 77 sites (77 company operated) and 17 automats.
Ireland: Includes 402 sites (158 company operated, 8 company owned and dealer operated, 232 dealer owned and dealer operated, and 4 franchise and other affiliates).
Latvia: Includes 85 sites (71 company operated and 14 dealer owned and dealer operated) and 4 automats.
Lithuania: Includes 94 sites (90 company operated and 4 dealer owned and dealer operated) and 11 automats.
Norway: Includes 467 sites (251 company operated, 198 company owned and dealer operated, and 18 dealer owned and dealer controlled) and 195 automats.
Poland: Includes 372 sites (273 company operated and 99 dealer owned and dealer operated) and 84 automats.
Russia: Includes 38 sites (38 company operated).
International
In Asia, the company’s network comprises 342 company-operated stores in Hong Kong, offering a strong on-the go food offer, as well as a variety of other merchandise items and services. Close to 1,900 stores in 14 countries and territories do business under the Circle K trademark under licensing agreements.
History
The company was founded in 1980. It was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in 1994.
