IGA, LAUREL GROCERY COMPANY AND McDONALD’S® JOIN FORCES TO BRING A NEW CO-BRANDED FORMAT TO THE SUPERMARKET INDUSTRY

Laurel Grocery Supplied Petrucci’s Market IGA to Open Outside of Pittsburgh

CHICAGO, IL - IGA today announced it has joined forces with McDonald’s and Laurel Grocery Company to bring a new co-branded supermarket/fast-food format to the industry. Burgettstown, Pennsylvania-based Petrucci’s Market IGA, a full-service supermarket that includes within the building an independently owned, full-sized McDonald's restaurant, will have its Grand Opening on August 12. This is the first co-branding endeavor of its kind for IGA, Laurel Grocery Company and McDonald's.

The Petrucci family has owned and operated Burgettstown’s sole supermarket since 1917. When Jim and Tom Petrucci, grandsons of the original Petrucci’s owner, lost their supermarket to flooding resulting from a tropical storm in 2004, they began to explore new concepts for rebuilding. The Petruccis began working with McDonald’s to develop a co-branding effort that would bring Burgettstown its first fast-food restaurant in conjunction with a newly constructed Petrucci’s Market. The Petruccis then sought and received license to join IGA with Laurel Grocery Company distribution.

According to McDonald's Pittsburgh Region Development Manager Patrick Hoffman, McDonald's has a history of co-branding with convenience store/gas station combinations, yet has not engaged in a co-branding effort with full-service supermarket. “The Petruccis owned the only supermarket within 15 minutes of Burgettstown. To make it work, we essentially morphed our oil-based co-branding initiative into one that would fit the Petrucci's Hometown Proud IGA supermarket model."

Petrucci’s Market IGA is a full-sized supermarket that is highly driven by perishable items such as produce, meat and deli. The Petruccis have tried to create an innovatively designed market that steered away from a traditional supermarket look. Their supermarket follows a “Tuscan” market style that features terracotta tile and hardwood in various areas throughout the store. To maximize linear feet, the Petruccis chose sleek black upright cases over traditional coffin cases and higher gondola shelving with three foot sections to enhance variety. The full-service McDonald’s occupies the same building and is market accessible.

Jim Petrucci said the new store endeavor with McDonald’s has occupied every aspect of their lives for the last two years and they are thankful for the opportunity. “We know that we have a unique concept here and we’re glad that IGA, Laurel Grocery Company and McDonald’s agreed that it was one that could work. Knowing that you have that kind of support takes away the fear of being involved in a new concept. IGA and Laurel have put together a program that I feel will give the business longevity. They’ve really stepped up to the plate to help us make this work. Our community needed this, and we’re proud that we are going to be able to bring it to them.”

McDonald’s Owner/Operator Ron Galiano agreed. “This is just a win-win-win situation,” he said. “The town of Burgettstown really needed the convenience and service that both Petrucci’s Market IGA and McDonald’s provide. And Burgettstown is just the kind of warm, family-friendly community that makes it pleasant for McDonald’s and the Petruccis to do business.”

“We are delighted to be developing a relationship with these excellent retailers, working with McDonald’s, and expanding our service area,” Robert Kirch, executive vice president/COO, Laurel Grocery Company said. “Jim and Tom Petrucci have demonstrated a true commitment to their community. They didn’t simply rebuild their supermarket; they looked for a way to improve it. It is our hope that this experience will open a door to allow other IGA Retailers to adopt this unique format.”

“If there has ever been an illustration of taking lemons and making lemonade, the Petruccis are it,” said Dr. Thomas Haggai, chairman and CEO of IGA. “They overcame the great disappointment of losing their store only to bring back to the community an even better model of operation. We are so pleased to have the opportunity to team with McDonald’s. IGA, Laurel Grocery Company and McDonald’s share compatible thinking in that each recognize selling our products is simply a part of working to the greater good of community activism and development.”

IGA is the world’s largest voluntary supermarket network with aggregate worldwide retail sales of more than $19.1 billion per year. The Alliance includes more than 4,000 Hometown Proud Supermarkets worldwide, supported by 52 distribution companies and more than 55 major manufacturers, vendors and suppliers encompassing everything from grocery to equipment items. IGA ranks in the top 10 in world food supermarketing. IGA has operations in 48 of the United States and more than 40 countries, commonwealths and territories on all six inhabited continents. IGA's theme and philosophy, Hometown Proud, dates from its 1930s national radio show, IGA Hometown Hour, reflecting the local roots of IGA independent grocers.

McDonald’s is the leading foodservice retailer in the global consumer marketplace, with more than 34,000 restaurants in 110 countries. More than 85 percent of McDonald’s restaurant businesses are locally owned and operated by independent entrepreneurs who live in the communities where they do business. For more information about McDonald’s, please visit http://mcdonaldspghtristate.com.