Whole Foods Market, the US organic retailer, has extended its distribution agreement with United Natural Foods (UNFI).
An agreement between the two companies was not scheduled to expire until 2013 but the renewed deal is now set to last until 2020.
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“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,” UNFI president and CEO Steve Spinner said.
The distributor has upped its sales forecast for its full fiscal year. Reporting its third-quarter results today (2 June), UNFI said it now expects annual sales of US$3.68-3.72bn. Its previous forecast was $3.54-3.63bn.
Whole Foods co-CEO Walter Robb added: “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.”
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