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Source86

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CPG News

Couche Tard Opens Distribution Center in Otsego, Plans Two Additional Facilities

Avatar photo

by Agustina Branz · November 19, 2025

Circle K logo alongside convenience store brand logos showing Couche-Tard retail portfolio served by Otsego distribution facility
Source: PR Newswire

Otsego, Minn. — Alimentation Couche Tard opened a distribution center in Otsego, Minnesota on November 18. The 266,000 square foot facility serves nearly 500 Holiday Station and Circle K convenience stores across the Twin Cities and Upper Midwest region. McLane Company operates the site, employing approximately 150 workers.

According to Couche Tard’s announcement, the Otsego location represents the first of three new distribution centers opening through early 2026. Additional facilities in Hazelwood, Missouri and Lockbourne, Ohio will open in December 2025 and January 2026 respectively. The three centers combined will support approximately 1,600 stores across 14 states.

Trey Powell, Senior Vice President of Global Merchandising at Couche Tard, stated in the press release:

“This facility is a key part of our effort to build world-class distribution capabilities that support our stores and deliver a more consistent and rewarding experience for our customers. With the support of valued partners like McLane and Ryan Companies, we’re creating a more integrated and aligned supply chain, improving speed, accuracy, and availability, and executing our merchandising initiatives with greater quality and efficiency.”

Couche Tard operates close to 17,300 stores globally across 29 countries and territories, with approximately 13,200 offering fuel.

Distribution Center Operations

The Otsego distribution center supplies Holiday and Circle K locations with packaged snacks, candy, beverages, tobacco, nicotine products, and convenience items not delivered through direct store delivery methods. The facility also distributes prepared food items for Couche Tard’s Fresh Food Fast program.

McLane Company functions as the third party logistics provider operating the center. Ryan Companies served as construction and architectural partner. The Hazelwood, Missouri distribution center opens in December 2025, followed by the Lockbourne, Ohio facility in January 2026.

Couche Tard currently operates distribution facilities in Texas, Arizona, and Quebec. With the three new centers, approximately 3,200 stores across North America will receive support through self distribution.

Why It Matters

Couche Tard’s distribution center expansion demonstrates how major convenience store chains are investing in self distribution capabilities rather than relying on traditional wholesale distribution models. For food manufacturers and suppliers, chain operated distribution centers change relationship dynamics, enabling direct sales negotiations rather than selling through wholesale distributors.

The shift affects co manufacturers producing private label convenience store products. Suppliers must coordinate production runs with distribution center receiving schedules rather than multiple individual store deliveries. Prepared food distribution for the Fresh Food Fast program creates specific requirements for temperature controlled warehouse zones and refrigerated truck deliveries.

The 150 employee count at Otsego indicates labor intensive operations requiring receiving teams, warehouse staff, order pickers, and shipping dock workers. For logistics providers, Couche Tard’s partnership with McLane Company demonstrates outsourcing models where chains contract with specialized logistics companies.

Circle K convenience store and fuel station exterior showing Couche-Tard retail brand supported by new distribution center network
Source: PR Newswire

FAQs

Where is the new Couche Tard distribution center located?

The new Couche Tard distribution center is located in Otsego, Minnesota. The 266,000 square foot facility opened on November 18, 2025 and serves nearly 500 Holiday Station and Circle K stores throughout the Twin Cities and Upper Midwest region.

How many distribution centers is Couche Tard opening?

Couche Tard is opening three new distribution centers. The Otsego, Minnesota location opened in November 2025. Additional facilities in Hazelwood, Missouri and Lockbourne, Ohio will open in December 2025 and January 2026 respectively, supporting approximately 1,600 stores across 14 states.

About Source86

Source86 connects food manufacturers, suppliers, and retailers with sourcing opportunities across the CPG industry. Couche Tard’s distribution center expansion exemplifies convenience store supply chain transformation requiring coordination between prepared food manufacturers, packaged goods suppliers, and third party logistics providers.

Looking to supply packaged snacks, beverages, or prepared foods to convenience store distribution centers? Source86’s platform connects you with convenience store chains and co manufacturers experienced in high volume distribution center supply. Contact us to explore partnerships with major convenience store operators.

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Agustina Branz

Senior Marketing Manager

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Agus is a curious, collaborative thinker who’s always looking to add value and momentum to the projects she touches.

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  • Ingredients
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      • Herbs
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    • Organic Seeds
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    • All Products
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  • Retail Ready
    • Coconuts Manufacturer
      • Coconut Oil
      • Coconut Water
      • Coconut Sweeteners
      • Desiccated Coconut
      • Coconut Milk
      • Coconut Cream
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      • Dry Noodles
      • Fresh Noodles
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      • Cookies
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      • Popcorn
      • Cereal Bars
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      • Energy Bites
    • Pulses Manufacturer
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      • Sesame Oil
      • Avocado Oil
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