DAYVILLE, Conn., June 19 /PRNewswire-FirstCall/ --
United Natural Foods, Inc. (Nasdaq: UNFI) today announced that its contract as
primary distributor to Wild Oats, Inc. (Nasdaq: OATS) would not be renewed
past its current expiration date of August 31, 2002.
For the Company's most recent fiscal quarter ended April 30, 2002, revenue
from Wild Oats was approximately $40.6 million, or 13.5% of total revenue.
The Company's 16.2% sales growth over last year's fiscal third quarter would
have been 18.0% excluding revenue from Wild Oats for each period. The Company
does not expect its fiscal fourth quarter financial results to be materially
affected.
"We are disappointed that we were unable to agree on a new contract," said
Michael Funk, the Company's Chief Executive Officer. "However, we believe
that the terms Wild Oats sought would not have been in the best interests of
United Natural Foods, our shareholders and our other customers. We will
re-direct our resources to pursue more profitable opportunities for growth
that we believe will provide greater economic value for our shareholders. We
plan to begin transitioning business the last week in August 2002 and to
continue servicing Wild Oats through the transition, expected to be completed
by the end of September 2002, and plan to further discuss the transition of
this business with Wild Oats' management over the next several weeks."
Mr. Funk added, "We remain the largest volume natural and organic products
distributor in the United States. Based on customer and supplier feedback, we
believe this is due to our industry-leading service levels and product
selection, as well as our integrity in our relationships with all our
stakeholders. We plan to keep operating all of our current distribution
facilities, enabling us to maintain our industry-leading standards for our
over 7,000 customers, including our primary distribution partnerships with
leading retailers in the natural and organic products industry."
Speaking about the Company's previously stated strategic initiatives, Mr.
Funk said, "Our plans to establish a greater presence in the Midwest and
Southwest markets have not changed. We plan to utilize the capital freed up
from the winding down of the Wild Oats contract to pursue our objectives in
these regions."
The Company said it would provide additional information regarding the
financial impact of the decision within the next several weeks at which time
management will provide guidance for the fiscal year ending July 2003. A mid-
quarter conference call will be held at this time.
About United Natural Foods
United Natural Foods, Inc. carries and distributes over 30,000 products to
more than 7,000 customers nationwide. The Company serves a wide variety of
retail formats including conventional supermarket chains, natural product
superstores and independent retail operators.
For more information on United Natural Foods, Inc., visit the Company's
web-site at www.unfi.com .
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this press release regarding United Natural's business
which are not historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in the
forward-looking statements, including but not limited to general business
conditions, the impact of competition and our dependence on principal
customers, see "Risk Factors" in the Company's quarterly report on Form 10-Q
filed with the Securities and Commission on June 13, 2002, and its other
filings under the Securities Exchange Act of 1934, as amended. Any
forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date made.
United Natural Foods, Inc. is not undertaking to update any information in the
foregoing reports until the effective date of its future reports required by
applicable laws.
SOURCE United Natural Foods, Inc.
-0- 06/19/2002
CONTACT: Todd Weintraub, Chief Financial Officer of United Natural
Foods, Inc., +1-860-779-2800, or General, Joseph Calabrese, +1-212-445-8434,
or Analysts, Vanessa Schwartz, +1-212-445-8433, both of FRB Weber Shandwick/