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GRAND RAPIDS, Mich -- Spartan Stores, Inc. has entered into a supply agreement with Detroit-based Sherwood Food Distributors, the nation's largest independent meat distributor. Sherwood serves almost half of the United States from distribution centers in Detroit, Cleveland, and Cincinnati.
Under the terms of the agreement, Spartan will provide Sherwood with some bakery and deli products beginning in early December. The agreement expands the products Sherwood will distribute to the nationwide base of Kmart supercenters and is expected to generate incremental annual sales for Spartan of around $18 million.
"We are very pleased to have won this supply agreement with Sherwood Food Distributors," said Craig C. Sturken, Spartan's chairman, president, and c.e.o. "Our efforts to more aggressively pursue incremental distribution sales are beginning to show results. Sales growth is one of our key priorities, and this agreement will add to the momentum we achieved in both distribution and retail operations during the past two quarters. We are a value-added partner to our distribution customers, with a reputation for outstanding service, quality, and operational efficiency. We look forward to building on our recent distribution sales growth success."
Sherwood c.e.o. Earl Ishbia said: "We are pleased to have developed a working partnership with Spartan Stores. We recognize their excellent service and distribution capabilities and look forward to a strategic partnership that will leverage the strengths of each organization to expand our collective growth opportunities."
Spartan is the ninth-largest grocery distributor in the United States, with warehouse facilities in Grand Rapids and Plymouth, Mich. The company distributes more than 40,000 private label and national brand products to 330 independent grocery stores in the state. Spartan also owns and operates 54 retail supermarkets and 21 deep-discount drug stores in Michigan and Ohio, including Ashcraft's Markets, Family Fare Supermarkets, Glen's Markets, Great Day Food Centers, Prevo's Family Markets, and The Pharm.
Additionally, Spartan announced today that it has hired Theodore Adornato as e.v.p., retail operations. Adornato joins Spartan from Tops Markets, LLC, an operating company of Netherlands-based Royal Ahold. Most recently, Adornato served as regional v.p. of Tops' Eastern Region, where he had complete operating and profit-and-loss responsibilities for 62 retail stores. In his new position, he will report directly to Spartan's chairman, president, and c.e.o. and will have responsibility for the company's retail store operations.