In an effort to build its presence in the fresh perimeter, KeHE has purchased San Diego, California-based deli distributor Monterrey Provision for an undisclosed amount.
KeHE, which provides natural & organic and specialty products to various grocery stores through North America, saw this acquisition as a way to further strengthen its brand in one of the most dynamic spaces in the retail environment, according to a press release.
“We view the perimeter as an essential element of our future growth strategy,” said Brandon Barnholt, President & CEO of KeHE. “The acquisition of Monterrey enables us to gain a greater national footprint in the perimeter, similar to the advantages we gained in the organic business with the acquisition of Nature’s Best in August 2014.”
Luke Abbott, Monterrey’s President and CEO saw similar benefits, noting that KeHE’s national distribution power will help give the company presence across the United States.
“Joining the KeHE family leapfrogs Monterrey by years in our ability to extend our excellence in fresh perimeter distribution to the entire country,” Abbott said. “Further, KeHE and Monterrey couldn’t be better cultural fits for each other.”
Monterrey carries items from several manufacturers in the deli industry, including Arthur Schuman, Atalanta, Foster Farms, DeLallo, Heinz, and many more. The company has a diverse product mix, specializing in specialty and natural products in categories such as bakery, cheese, dairy, deli meats, poultry, and others.