Distribution consolidating products


21-Jul-2020 13:52

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However, with this opportunity come numerous challenges, officials conceded.UNFI has long relied on Whole Foods — a large, but low-margin business — for the lion's share of its sales, and that continues with the grocer now comprising 16% of sales, while no other supplier commands more than 5%."There's no perfect acquisition, but acquiring Supervalu puts us in a position to win," Spinner said.The greatest asset the combined companies believe they have is a robust product selection across channels and categories — from natural and organic produce to conventional groceries, and everything in between.Currently UNFI does billion in natural produce sales,

However, with this opportunity come numerous challenges, officials conceded.UNFI has long relied on Whole Foods — a large, but low-margin business — for the lion's share of its sales, and that continues with the grocer now comprising 16% of sales, while no other supplier commands more than 5%."There's no perfect acquisition, but acquiring Supervalu puts us in a position to win," Spinner said.The greatest asset the combined companies believe they have is a robust product selection across channels and categories — from natural and organic produce to conventional groceries, and everything in between.Currently UNFI does $3 billion in natural produce sales, $1.5 billion in produce and $1.5 billion in private brands.UNFI's biggest growth opportunity right now, officials said, is cross-selling retailers on products outside their core focus.Spinner and others chalked up Supervalu's sales underperformance in part to a "malaise" as the distributor has been in "deal mode," said Sean Griffin, Supervalu's CEO.

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However, with this opportunity come numerous challenges, officials conceded.

UNFI has long relied on Whole Foods — a large, but low-margin business — for the lion's share of its sales, and that continues with the grocer now comprising 16% of sales, while no other supplier commands more than 5%.

.5 billion in produce and

However, with this opportunity come numerous challenges, officials conceded.UNFI has long relied on Whole Foods — a large, but low-margin business — for the lion's share of its sales, and that continues with the grocer now comprising 16% of sales, while no other supplier commands more than 5%."There's no perfect acquisition, but acquiring Supervalu puts us in a position to win," Spinner said.The greatest asset the combined companies believe they have is a robust product selection across channels and categories — from natural and organic produce to conventional groceries, and everything in between.Currently UNFI does $3 billion in natural produce sales, $1.5 billion in produce and $1.5 billion in private brands.UNFI's biggest growth opportunity right now, officials said, is cross-selling retailers on products outside their core focus.Spinner and others chalked up Supervalu's sales underperformance in part to a "malaise" as the distributor has been in "deal mode," said Sean Griffin, Supervalu's CEO.

||

However, with this opportunity come numerous challenges, officials conceded.

UNFI has long relied on Whole Foods — a large, but low-margin business — for the lion's share of its sales, and that continues with the grocer now comprising 16% of sales, while no other supplier commands more than 5%.

.5 billion in private brands.UNFI's biggest growth opportunity right now, officials said, is cross-selling retailers on products outside their core focus.Spinner and others chalked up Supervalu's sales underperformance in part to a "malaise" as the distributor has been in "deal mode," said Sean Griffin, Supervalu's CEO.

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Rather than opt for a gradual melding of the two companies' operations, UNFI has decided to accelerate the integration, he said.

The earnings outlook for this year came in higher than analysts expected, sending UNFI's stock price up nearly 30% yesterday.

Investor optimism may be short-lived, however, with the company's stock price falling more than 16% by Thursday afternoon.

Doing so will eliminate duplicate processes, while still allowing for high-speed fulfillment, company officials said.

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At the same time, UNFI aims to optimize its distribution network by linking facilities that handle fast-moving goods with larger ones that handle slower-moving products.

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