United Natural Foods Inc., a leading natural food distributor, announced its plans to purchase Tony’s Fine Foods, a distributor of perishable food products, in late May for US$196 million. The deal is expected to close in July and gives the company a boost against mainstream distributors, according to UNFI. It allows it to offer several “perimeter products” to its main distribution networks, according to Steve Spinner, CEO of UNFI.
“Given the growth in our space, competition has also increased. Conventional food distributors and continued movement to direct distribution by supermarkets for fast moving products will pressure our growth as the industry expands,” says Spinner.
The Tony’s line includes specialty protein, cheese, deli, food service and bakery goods distributed throughout the Western United States, Alaska and Hawaii.
In addition to the acquisition, UNFI has invested in a 450,000 square foot distribution centre in Wisconsin to deal with growing demand.
“Our sales growth, almost 14 per cent ahead versus the prior year, continues to prove the natural organic and specialty products are not a passing trend for the fast growing permanent part of consumer purchases,” says Spinner.
