Otsego

Let's take one more call.

We'll go to 12-year-old George calling in from Otsego, Minnesota.

George in Minnesota, how are you? Good.

How about you? I'm doing great.

And everything is a battle in there.

We had actually gone away from Costco, but they just built one in Otsego.

It's like it's a mile from our house.

So we're powerless against that.

You never see, you know, pop up voting locations in Wright County, Minnesota.

Let's go to Otsego, you know, or Delano, you know, and St. Michael, Albertville, you know, and see if there's some pop-up voting up there.

Right.

It just doesn't happen, and nobody initiates that.

and now it's building what's called a hybrid model.

In December 2024, it agreed to lease three new distribution centers, each around 260,000 square feet in Otsego, Minnesota, Hazelwood, Missouri, and Lockbourne, Ohio.

Custard controls the building and the merchandising decisions, and McLean runs the operations as a third-party logistics provider.

Otsego opened in 2025, November, to serve about 500 Holiday and Circle K stores, which Hazelwood and Lockbourne scheduled to follow over the winter.

Together, the three are designed to serve about 1,600 stores in 14 states, taking roughly 3,200 North American stores onto some form of self-distribution.

So why does this matter? Because in March, the CFO said that the commercial savings from self-distribution are still to come.