Albertsons, KeHe renew distribution pact

Albertsons, KeHe renew distribution pact

Grocery retailer re-ups with natural/organic wholesaler

Albertsons Cos. has renewed its supply agreement with KeHE Distributors LLC as its primary distributor for natural, organic and specialty products.

Naperville, Ill.-based KeHE announced the renewal on Tuesday. Terms weren’t disclosed. Albertsons had tabbed KeHE as its primary natural, organic and specialty wholesaler in 2015, expanding on an earlier relationship, upon an early termination of its supply pact with United Natural Foods Inc.

"KeHE has been a key partner to Albertsons Cos. as we focus on delivering the great natural, organic and specialty products customers want when and how they want them, both in our stores and online,” Shane Sampson, chief marketing and merchandising officer for Boise, Idaho-based Albertsons, said in a statement. “We are very pleased to renew this partnership."

Boise, Idaho-based Albertsons Cos. operates 2,277 stores overall. Its approximately 20 retail banners include Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Sav-On, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Amigos, Haggen andUnited Express.

"Albertsons is a premier U.S. food retailer,” said KeHE President and CEO Brandon Barnholt. “Their blue-chip portfolio of banners, emerging omnichannel capabilities and national-scale position the company for growth and success We are very excited and honored to continue to serve them."

KeHE supplies natural, organic, specialty and fresh products to natural food stores, supermarket chains, independent grocery stores and other specialty retailers across North America. During 2018, the company added online natural/organic grocer Thrive Market as a primary distribution customer and renewed its distribution pact with Sprouts Farmers Market through 2025.

Also last year, KeHE added nearly 15,000 SKUs to its product offering. The distributor said categories such as sweeteners, pet, meat snacks, ready-to-drink teas and coffee generated more than 20% sales growth, while its fresh business strengthened with a fully integrated portfolio following the acquisition of Monterrey Provisions in 2016.

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