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Couche-Tard among the 200 largest companies in the world

Couche-Tard 59.1 billion US dollars (Fire & Flower)
Altria 25.36 billion USD (Cronos)
Anheuser-Busch 15.59 billion USD (Tilray)
Molson Coors 10.6 billion USD (HEXO)
Constellation Brands 6.028 billion USD (Canopy)

https://www.archyworldys.com/couche-tard-among-the-200-largest-companies-in-the-world/

August 18, 2020

Alimentation Couche-Tard has just made its entry into the select club of the 200 largest global companies, reveals the most recent Global 500 ranking of the American magazine Forbes.

The Laval-based retailer climbed to 183rd among global giants, just behind Japanese rival 7-Eleven (178e place), but ahead of big names like Unilever (185e place), Goldman Sachs (202e place), LG Electronics (207e place), Pfizer (215e place), the Royal Bank of Canada (223e place) et Rio Tinto (280e place).

The classification of Forbes uses the revenues recorded by Couche-Tard during its fiscal year which ended on April 30, 2019, i.e. 59.1 billion US dollars (78.3 billion CA $). As a result of the pandemic, the company’s revenue fell 8% in 2019-2020 to reach US $ 54.1 billion (over CA $ 71.6 billion).

In seven years of presence in the Global 500 of Forbes, Couche-Tard has gained 146 places. In 2014, the company was at 329e rang.

Based on revenue, Couche-Tard is currently the third largest company in Canada, behind Toronto heavyweight Brookfield Asset Management (155e place) and Manulife (181e place).

“It is the only Canadian company to have really succeeded in international retail,” notes finance and governance expert Michel Nadeau.

He points out, however, that nearly three-quarters of Couche-Tard’s revenues come from gasoline sales, a sector set to decline with the growing popularity of electric vehicles.

In addition, several other products sold in convenience stores and gas stations are also on the decline, such as candy, cigarettes and soft drinks.

“This is one of the enormous challenges facing Couche-Tard: how to reinvent yourself? Said Mr. Nadeau.

In Norway, where half of all new vehicles sold are electric, Couche-Tard puts forward quality baked goods to generate sales while customers wait to charge their cars.

Michel Nadeau is also worried about the Quebec presence within the company. CEO since 2014, American Brian Hannasch lives in Indiana and spends relatively little time at the head office in Laval.

In fact, only one of the company’s eight most senior executives – CFO Claude Tessier – lives in Quebec.

In addition, the multiple voting shares that give control of Couche-Tard to its four founders will expire at the end of next year. The company will then become more vulnerable to a hostile takeover.

“The board of directors must ensure that Couche-Tard does not lose its Quebec roots,” says Mr. Nadeau.

Note that Seven & I (owner of 7-Eleven) has just beaten the pawn at Couche-Tard for the acquisition of the American chain Speedway, a transaction of US $ 21 billion (more than CA $ 27.8 billion) that will consolidate its status as a world leader in the sector.

Analysts believe, however, that Couche-Tard did well to pass its turn, deeming the price too high.

In interview with Forbes, Mr. Hannasch confided that Couche-Tard relies in particular on cannabis to fuel its future growth. The company is already a shareholder of a Canadian retailer active in the sector, Fire & Flower.

“One day it will be legalized in most of the United States,” he argued.

The executive also revealed that Couche-Tard is currently testing “dynamic pricing,” which involves adjusting the prices of certain products based on real-time demand in each store.

“It’s easier to ask for $ 1.69 for a Pepsi in any store,” Hannasch said. But if you take a few cents here, a few cents there, it adds up quickly when you have 10,000 establishments. ”