United Natural Foods, Inc. the USA’s leading independent national distributor of natural, organic and specialty foods reported that first quarter net sales jumped 24.4% to $1.99 billion compared to $1.60 billion for the same period last fiscal year.
And hot on the heels of its late October, 2014 successful bid for Associated Wholesalers, Inc., a regional cooperative food distributor based in Robesonia, PA, C&S Wholesale Grocers, Inc. and The Grocers Supply Company, Inc. announced in November that C&S has agreed to acquire the wholesale distribution and supply business of Grocers Supply.
Meanwhile, UNFI’s acquisition of Tony’s Fine Foods performed extremely well during their first quarter as part of UNFI, and it looks forward to rolling this perishable platform out across the USA as we look to both existing and new customers.
“UNFI achieved record sales of almost $2 billion during our first quarter of fiscal 2015 and comparable sales growth recovered nicely after experiencing a modest slowdown during the first few weeks of the quarter,” said Steven Spinner, president and CEO.
The first quarter of fiscal 2015 included incremental net sales of approximately $227.7 million, resulting from the company’s acquisitions of Trudeau Foods in the first quarter of fiscal 2014 and Tony’s Fine Foods (“Tony’s”) in the fourth quarter of fiscal 2014.
Gross margin decreased 92 basis points to 16.0% for the first quarter of fiscal 2015 compared to 16.9% for the same period last year.
Mr Spinner said that as discussed at the analyst day in October, UNFI’s newest distribution facilities, located in Racine, Wisconsin and Hudson Valley, New York, were designed to handle the unique storage requirements of Tony’s exciting products.
C&S Wholesale Grocers is the largest wholesale grocery supply company in the USA. Its acquisition will include Grocers Supply’s warehouse and distribution operations in the Houston, Dallas, and Rio Grande Valley areas along with its approximately 1,800 employees, but will not include any of Grocers Supply’s retail operations.
“The Grocers Supply Company has a century-long legacy of providing the highest level of service to its valued customers, which are primarily independent retailers and regional chains,” said Rick Cohen, C&S chairman and CEO.
“We very much look forward to partnering with the Grocers Supply team to continue this tradition and to expand the services and offerings available to its customers through the strength and scale of C&S.”
Grocers Supply distributes all major product lines, including grocery, frozen, dairy, meat, produce, general merchandise, and health and beauty care, and is one of the leading distributors of Hispanic grocery products in the country. Grocers Supply’s largest customer is the Fiesta Mart chain of 60 stores.