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    Wawa to Outsource Tobacco Stamping to McLane

    Despite efforts to streamline the process, the retailer said the business unit is not longer viable.

    MEDIA, Pa. -- Wawa Inc. has tapped McLane Co. to take over its tobacco stamping operations. The move, which will take hold this fall, has been five years in the making.

    According to a report in the Delaware County Daily Times, Wawa CEO Howard Stoeckel and President Chris Gheysens issued a memorandum announcing the plan last month.

    "After a long and careful analysis and consideration, we have decided that, despite the significant improvements our associates have made in streamlining the process, it is no longer viable to run the stamping operation there," the memo stated.

    Lori Bruce, Wawa public relations officer, told the news outlet that Bruce said the decision is an integral part of staying in business. "We spent considerable time and effort reviewing the complexity and viability of continuing the function prior to making the decision to move it to a third party," she said. "[C]hange is a solid part of our history. We've been evolving to meet the developing needs of our customers for more than 200 years."

    Outsourcing the tobacco stamping operation will eliminate 27 jobs. The affected employees have been offered severance packages -- on a voluntary and involuntary basis, the memo added. The employees also have the opportunity to apply for other positions within the company.

    Cathy Pulos, Wawa's chief people officer, told the news outlet that company has been considering eliminating the tobacco-stamping operation since 2007. "For a retailer to do this, it is not the norm," she explained. "It is not a core competency. We need to focus on our beverage and retail business."

     

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