Bottler Buffalo Rock sells vending operations to Canteen

Buffalo Rock is the nation’s largest single-family, privately owned Pepsi and Keurig Dr Pepper bottler and has been family-owned for nearly 125 years. Established as the Alabama Grocery Co. in 1901, Buffalo Rock released its flagship ginger ale in 1906 and opened its first full-scale bottling plant in 1922. Years later, the company added full-line vending and other food services to its portfolio, including its first micro market in 2012. The company’s full-line vending operations grew to almost 700 micro markets and more than 7,600 vending locations.

All or parts of 10 of Buffalo Rock’s 14 franchise sales center locations will be added to Five Star’s base of business. The remaining business will be split between associated local Canteen partners.

Impact for Five Star

For Five Star, the acquisition made solid-base business sense for its local operations, says C.J. Recher, vice president of marketing at the company. “Buffalo Rock operated well with experienced staff, strong customer relationships, and tight community ties,” Recher noted. That’s a combination we prefer. It helps with smooth transition of the business and successful ongoing operations.”

One of the first tasks for the Canteen operators will be servicing the acquired Buffalo Rock accounts. “For Five Star, it’s an intentional process of operating the newly acquired routes as they were out of the gates. Over time, there may be some optimization to ensure best service to all customers,” Recher explained. “Five Star will make integrations and upgrades to hardware, software, and other technology as needed to be sure the business operates well. From a customer-facing perspective, we will layer in our monthly promotions and other unique programs over time. Coffee, tea, water, and pantry customers will soon get access to our online ordering portal.”

Recher noted that all employees dedicated to the full-line vending operations Five Star acquired were welcomed to Five Star and will be helping the company operate moving forward.

What they are saying

“Buffalo Rock has built a strong and successful full-line vending business over the years, and we are excited to see it transition into the capable hands of Five Star and Canteen — two outstanding organizations that share our commitment to service excellence,” said Matthew Dent, president and CEO of Buffalo Rock Co., in a release. “This strategic partnership allows us to focus on our core beverage business while ensuring our vending customers continue to receive best-in-class service.”

“This transaction is about a strategic alignment, transforming two longtime competitors into strategic partners. It will position our two companies around a common goal of providing our customers with a more balanced portfolio of products and services while creating a partnership that enhances future growth for both of us. We look forward to integrating our capabilities into a combined organization that delivers the best breaktime experience in the industry,” said Richard Kennedy, Five Star’s president and CEO, in a release.

“This move strengthens our ability to invest in the future by enhancing our executional capabilities, expanding and innovating our beverage portfolio, and elevating our brand development efforts,” said David Miller, senior vice president of customer strategy, marketing & brand development of Buffalo Rock Co., in a release. “By sharpening our focus on beverages, we can continue to deliver exceptional products and service to our retail and on-premise customers while driving growth and innovation in the market.”