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UNFI re-ups primary distribution pact with Whole Foods

Amazon-owned specialty grocer remains wholesaler’s largest customer

Russell Redman

March 4, 2021

2 Min Read
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Whole Foods accounted for 18% of UNFI's net sales in the distributor's most recently completed fiscal year.Whole Foods Market

United Natural Foods Inc. (UNFI) has extended its primary wholesale grocery agreement with Whole Foods Market, its largest single customer.

UNFI said Thursday that, with the extension, the term of the companies’ distribution pact now runs until Sept. 27, 2027. The contract previously was slated to expire on Sept. 28, 2025.

“Since the onset of the COVID-19 pandemic, UNFI and Whole Foods have worked closely together to consistently deliver ‘better for you’ foods to consumers throughout North America. This extension allows both companies to maintain focus on what is most important: continuing to meet the growing demand for healthy food at home as we navigate through the global pandemic,” UNFI Chairman and CEO Steven Spinner said in a statement. “We look forward to continuing to play a very important role in the rapidly evolving ‘foodscape’ and supply chain, while furthering our tradition of innovation, scale and efficiency.” 

A subsidiary of e-tail giant Amazon, specialty grocer Whole Foods accounted for about 18% of UNFI’s net sales for its 2020 fiscal year ended Aug. 1 and is the only customer that represented more than 10% of the distributor’s net sales.

UNFI’s net sales with Austin, Texas-based Whole Foods — the only customer in the distributor’s “supernatural” channel — rose 7.4% to $4.72 billion in fiscal 2020 and climbed 9.3% to $1.21 billion for the fiscal 2021 first quarter ended Oct. 31

Related:UNFI to see growth with unique mix of brands, services, says CEO Steve Spinner

Overall, Whole Foods now operates 502 stores in the United States, 14 in Canada and seven in the United Kingdom. UNFI also supplies some of Amazon’s food stores.

“UNFI plays a key role in ensuring Whole Foods Market is able to meet the growing demand for high quality products across our network of stores and facilities,” stated Bart Beilman, senior vice president of supply chain and retail operations at Whole Foods. “We’re pleased to continue our strong and longstanding partnership with UNFI.” 

Providence, R.I.-based UNFI is the nation’s largest publicly traded grocery wholesaler, supplying about 30,000 locations for natural product superstores, independent retailers, conventional supermarket chains, e-commerce retailers and foodservice providers from 55 distribution centers and warehouses.

Other UNFI retail customers, according to the company’s 2020 annual report, include The Fresh Market, Coborn’s, Natural Grocers, Jerry’s Foods, Vitamin Cottage, All American Quality Foods, Festival Foods, Ahold Delhaize USA (Stop & Shop, Giant Food, The Giant Company and Hannaford), Lunds & Byerlys, Superior Grocers, Vallarta Supermarkets, Wegmans, Raley’s, Redner’s Markets, Neiman’s Family Market, Dierberg’s, El Super Supermarkets, Sprouts Farmers Market, Kroger, Harris Teeter, Giant Eagle, Market Basket, Schnuck Markets, ShopRite, Publix, Raley’s and Loblaw.

Related:UNFI ramps up business with new, existing customers in Q1

In October, UNFI entered a primary grocery distribution agreement with Matawan, N.J.-based with Key Food Stores Co-Operative Inc. that will bring an estimated $10 billion in sales over 10 years.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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