Amends Primary Distribution Agreement PROVIDENCE, R.I., June 2, 2010 /PRNewswire via COMTEX/ --United Natural Foods, Inc. (Nasdaq: UNFI) ("UNFI" or the "Company") announced today that UNFI and Whole Foods Market (Nasdaq: WFMI) have amended their Primary Distribution Agreement to extend the term of the agreement for an additional seven years. Under the terms of the amended agreement, the Company will continue to serve as the primary wholesale natural grocery distributor to Whole Foods Market in those United States regions where UNFI currently serves as the primary distributor. This new agreement amends and extends an existing seven-year primary distribution agreement that was not scheduled to expire until September 25, 2013, to September 25, 2020.
Steven Spinner, United Natural Foods' President and Chief Executive Officer, commented, "We are pleased to continue our partnership with Whole Foods Market, the world's leading natural and organic foods supermarket. This amendment reflects the continued evolution of our relationship and secures distribution with our largest customer for the next decade."
"Extending the term of our Whole Foods Market distribution agreement provides UNFI with a platform to continue to grow our market share in specialty foods and organics, as well as invest in our infrastructure. Over the next three years, we will continue to enhance our national warehouse management systems in order to improve customer service and efficiency." Mr. Spinner added, "We look forward to capitalizing on the tremendous growth opportunities that exist in the industry as a whole, as well as helping Whole Foods Market, as it implements its strategy for growth."
"Whole Foods Market is pleased to extend our long-term relationship with United Natural Foods," said Walter Robb, Co-Chief Executive Officer of Whole Foods Market. "Having a long-term primary distribution partner is an important element of our growth strategy, as it allows us to concentrate our capital and resources over the next decade on growing and improving our store base while focusing our internal distribution efforts around key perishable departments. We continue to seek opportunities to enhance the strategic partnership between UNFI and Whole Foods Market."
United Natural Foods reported net sales for fiscal 2009, ended August 1, 2009, of $3.45 billion. Whole Foods Market accounted for approximately 33% of United Natural Foods' sales in fiscal 2009.
About United Natural Foods
United Natural Foods, Inc. (http://www.unfi.com/) carries and distributes more than 60,000 products to more than 17,000 customer locations nationwide. The Company serves a wide variety of retail formats including conventional supermarket chains, natural product superstores, independent retail operators and the food service channel. United Natural Foods, Inc. was ranked by Forbes in 2005 as one of the "Best Managed Companies in America," ranked by Fortune in 2006 - 2010 as one of its "Most Admired Companies," winner of the Supermarket News 2008 Sustainability Excellence Award, and recognized by the Nutrition Business Journal for its 2009 Environment and Sustainability Award.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in the Company's filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K filed with the Securities and Exchange Commission on September 30, 2009 and its quarterly reports on Form 10-Q filed thereafter, and include, but are not limited to, the Company's dependence on principal customers; the Company's sensitivity to general economic conditions, including the current economic environment, changes in disposable income levels and consumer spending trends; increased fuel costs; the Company's sensitivity to inflationary pressures; the relatively low margins and economic sensitivity of the Company's business; the ability to identify and successfully complete acquisitions of other natural, organic and specialty food and related product distributors; and management's allocation of capital and the timing of capital expenditures. 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. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any projections of future results of operations are based on a number of assumptions, many of which are outside the Company's control and should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced projections, but it is not obligated to do so.
SOURCE United Natural Foods, Inc.