As part of its retail diversification strategy to expand its proprietary food offer, customer reach and innovation pipeline, Parkland Corp. says it has reached a deal to acquire M&M Food Market for $322 million
The acquisition of the Mississauga-based frozen food retailer includes more than 300 standalone franchise and corporate owned stores, as well as 2,000 M&M Express locations. In addition, M&M brings to the table a well-established rewards program with approximately two million active members, which will create extensive cross-promotional opportunities between the two brands.
“This acquisition provides a platform to grow our food offer, expand our proprietary brands, and advance our digital and loyalty strategy,” Ian White, SVP strategic marketing & innovation, said in a release. “Consistent with our commitment to create convenience destinations, M&M’s national store network, and innovative approach to food preparation and menu development positions us to offer high-quality food that complements our growing quick-serve restaurant offerings. We will grow these capabilities in all our operating regions and bolster our digital connection to customers by combining M&M and Journie rewards programs. We look forward to bringing On the Run and M&M together to help customers make the most of every stop.”
The acquisition will create food options that Parkland's customers can consume fresh-from-frozen, both on site and on the go, and prepared from frozen at home. M&M products will be sold through Parkland's existing network and soon to be launched standalone On the Run convenience locations. The Calgary-based C&G giant says M&M will be integral to growing its On the Run network, bolstering in-store, e-commerce and home delivery offers, and supporting the standalone convenience concept.
“Parkland’s On the Run brand is a convenience retail leader and we are excited to combine our two offerings,” said Andy O’Brien, CEO of M&M. “M&M and its franchise partners share Parkland’s customer focus and passion for quality food. The combination of our innovative food capabilities and Parkland’s more than 3,000 retail locations in 25 countries creates an immediate runway of growth and expansion opportunities.”
Parkland says it plans to "leverage M&M’s expertise and track record of developing successful menus in its innovation kitchen to evaluate and develop additional fresh and quick-serve food choices across our network."
Through a portfolio of convenience, retail, commercial and wholesale brands, Parkland serves more than one million customers per day across Canada, the United States, the Caribbean region and Central and South America. In addition, the company manufactures low carbon fuels and is building an extensive electric vehicle charging network. Founded in 1980, M&M Food Mart, which rebranded from from M&M Meat Shops in 2016, operates in all all ten provinces, as well as the Yukon, and the Northwest Territories.