PROVIDENCE – United Natural Foods Inc. has reached a long-term supply agreement with Key Food Stores Co-Operative, the company announced on Tuesday.
The deal is expected to result in roughly $10 billion in sales over 10 years. Key Food has supermarket locations in New York, New Jersey, Florida and other states in the Northeast, UNFI said.
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“Key Food, whose members operate more than 315 stores, is a rapidly growing organization with a large market share in the New York market,” said UNFI’s chairman and CEO Steven Spinner. “We have recently begun to service their Florida stores and are excited to expand service to their Northeast stores toward the end of 2021. We believe our unmatched product variety and knowledge of today’s consumer will benefit Key Food and its retailers, and we look forward to driving value to their operations.”
The deal will see UNFI become Key Food’s primary wholesaler, providing stores with conventional, natural and organic grocery products, along with a wide variety of international items.
The company said that to satisfy the demand that will accompany the deal, it will be opening a Class A distribution facility in Pennsylvania, which is currently under construction. This facility will provide an additional 1.3 million square feet of distribution capacity for UNFI’s existing and new customers in the Northeast and surrounding areas. UNFI anticipates the new distribution center will create more than 500 local jobs and expects the facility to open in fall 2021.
