US grocery retailer and distributor Supervalu has announced that it has formed a specialty produce distribution company, W. Newell & Co., designed to meet the growing demands of retailers for higher quality, wider variety and faster delivery of produce.

The new company will be a specialty distribution company exclusively focused on fresh produce and will be operated separately from Supervalu’s full-line general distribution business. The company’s headquarters will be based at a regional produce centre currently under construction in Champaign, Illinois.

Supervalu’s vice president of produce, Gary Gionnette, will head the new company as chief operating officer. Gionnette reports to David Boehnen, executive vice president of Supervalu.