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United Natural Foods, Inc. (UNFI) and Whole Foods Market have extended their primary distribution agreement for an additional seven years. Under the terms of the amended agreement, the company will continue to serve as the primary wholesale natural grocery distributor to Whole Foods Market in the United States regions where UNFI currently serves as the primary distributor.
Walter Robb, Whole Foods’ co-CEO said, “Having a long-term primary distribution partner is an important element of our growth strategy, as it allows us to concentrate our capital and resources over the next decade on growing and improving our store base while focusing our internal distribution efforts around key perishable departments.”
For its part, Steven Spinner, president/CEO of Providence, R.I.-based United Natural Foods, said the extended partnership with the world's leading natural and organic foods supermarket retailer “reflects the continued evolution of our relationship and secures distribution with our largest customer for the next decade.”
Spinner said the new distribution pact further provides UNFI with a platform to continue to grow its market share in specialty foods and organics, as well as invest in our infrastructure. “Over the next three years, we will continue to enhance our national warehouse management systems in order to improve customer service and efficiency.”
United Natural Foods reported net sales for fiscal 2009, ended August 1, 2009, of $3.45 billion, for which Whole Foods Market accounted for approximately 33 percent.