000430 Burger King Finds New U.S. Distributor

New York - Many of Burger King's flame-broiled hamburgers will have a new distributor by July, the fast-food chain said.

AmeriServe Food Distribution Inc., which serves about 5800 of the hamburger chain's 10,850 resturants under contracts expiring May 15, said it will end distributions to Burger King in July.

Miami-based Burger King, which is owned by Diageo Plc, said it “has already arranged distribution services” for the restaurants served by AmeriServ, adding the two companies have worked out a smooth transition which it expects to complete by July.

AmeriServe said the Burger King business represents about $2.2 billion of the company's $6.2 billion in annual revenue.

“After exiting the Burger King business, we will still be one of the largest distributors of food and supplies to the U.S. quick serve restaurant industry,” noted Ron Rittenmeyer, chief executive officer of AmeriServe.

The company said employment will decrease as it discontinues service to Burger King locations, but provided no details.

Burger King said the Debtor-In-Possession financing it put in place to help AmeriServe meet its operating expenses following the Chapter 11 bankruptcy filing on Jan. 31 will remain in effect until August.

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com