NOTE FROM THE EDITOR
Distributors don’t often command center stage in the grocery industry, but three such companies have lately been in the spotlight.
In early June, United Natural Foods, Inc. was forced to abruptly yank its online ordering and invoicing systems from service after cyberattackers penetrated its network, compelling it to rely on manual procedures and leaving many retailers scrambling for other ways to bring products to their stores. While UNFI’s systems are again up and running, the company has warned investors that its unexpected trip to the paper age will materially impact its financial performance and sock it with expenses as it works to recover from the cyberattack.
UNFI also recently made news with its announcement that it will mutually end its relationship with Key Food later this year and close a Pennsylvania distribution center as a result. The move will cost UNFI billions in potential sales, but reflects a broader effort by UNFI to improve the efficiency of its distribution network.
Also last month, C&S Wholesale Grocers announced plans to absorb SpartanNash in a deal worth nearly $1.8 billion that will create another grocery distribution company with national scope if it’s approved by regulators. Word of the transaction followed SpartanNash’s disclosure that it had reorganized its corporate structure in a bid to accelerate growth.
Check out some of the key stories on the grocery distribution front over the past few weeks.
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