Teamwork is about to make a $10 billion dream work for United Natural Foods, Inc. (UNFI) and Key Food Stores Co-Operative. The two have struck up a partnership that is projected to see sales of approximately $1 billion per year for the next decade.
“Key Food, whose members operate more than 315 stores, is a rapidly growing organization with a large market share in the New York market,” said Steven Spinner, Chairman and Chief Executive Officer for UNFI. “We have recently begun to service their Florida stores and are excited to expand service to their Northeast stores toward the end of 2021. We believe our unmatched product variety and knowledge of today’s consumer will benefit Key Food and its retailers, and we look forward to driving value to their operations.”
UNFI will supply conventional, natural, and organic grocery products to Key Food stores, along with a wide variety of international items, as well as expanding the scope of its distribution network through a new state-of-the-art, Class A facility in Pennsylvania, according to a press release.
Expected to open in fall of next year, the facility is strategically located to provide an additional 1.3 million square feet of distribution capacity for UNFI’s new and existing customers in the greater Northeast and surrounding areas, including Key Food.
“We are excited about our relationship with UNFI,” Dean Janeway, Chief Executive Officer for Key Food, commented. “Their unique ability to service the entire store on a single delivery in addition to their industry expertise and buying power gives Key Food members an advantage in the marketplace. We are thrilled to partner with the UNFI team, and our members look forward to offering UNFI’s full line of products to their shoppers.”
As we continue to uncover the latest in industry partnerships, deals, and more, Deli Market News will report.