Broker/Wholesaler Corner

Unified Grocers to supply 146 new Haggen stores

Commerce, Calif.-based Unified Grocers Inc. announced that it will be the primary and preferred supplier for all the new Haggen stores in California, Nevada and Arizona, and will be a substantial supplier for the Oregon and Washington stores. Additionally, Unified’s Market Centre subsidiary will supply specialty products for all of the stores. Grocery chain Haggen, based in Bellingham, Wash., announced in December that it entered into an agreement to acquire 146 stores as part of the divestment process brought about by the Federal Trade Commission’s (FTC) review of the Albertson’s LLC and Safeway merger. The agreement represents about $750 million in annual new business, Unified stated.

“This is an exciting opportunity for Unified to partner with a flourishing, dynamic member of the Unified cooperative, build on our already strong relationship, and help Haggen grow its business,” said Bob Ling, Unified president and CEO. “It’s great news for consumers, creating additional choice in the marketplace, and puts Unified in position to add significant business to the cooperative. The agreement will enable us to lower our costs of operation as the company benefits from economies of scale — and ultimately provide better pricing for all our customers.”

With this acquisition, which remains subject to FTC approval, Haggen will expand from 18 stores with 16 pharmacies to 164 stores with 106 pharmacies, and from a Pacific Northwest company with locations in Oregon and Washington to a major regional grocery chain with locations in Washington, Oregon, California, Nevada and Arizona. The conversion to Haggen store management will commence in early February and continue throughout the first half of the year.

C&S purchases Associated Wholesalers Inc.

In a sale order hearing on Oct. 29, a bankruptcy court approved Keene, N.H.-based C&S Wholesale Grocers’ (C&S) bid to purchase Associated Wholesalers Inc. (AWI) and its subsidiaries. AWI, a regional cooperative food distributor based in Robesonia, Pa., operates two distribution centers in Pennsylvania and also provides retail services to its customers and members. Its subsidiaries include White Rose, operating three distribution centers in New Jersey, and Nell’s Shurfine Markets, operating four retail stores in Pennsylvania. The acquisition, finalized before Thanksgiving, included substantially all of AWI/White Rose’s assets, as well as their 2,200 employees, C&S said.

“We are excited to have the opportunity to partner with Associated Wholesalers’ and White Rose’s strong team and customer base of independent grocers,” said Rick Cohen, chairman and CEO, C&S. “My grandfather founded C&S to supply independent retailers, and while we now proudly service grocers of all sizes, this transaction will give us an even greater capacity to provide the unique services required by independents and regional chains.”

AWI entered into Chapter 11 bankruptcy on Sept. 9, with C&S named as the “stalking horse” bidder. Supervalu Inc. was also a bidder for AWI.

AWG names David Smith evp, operations

Associated Wholesale Grocers, Kansas City, Kan., said it promoted David Smith to executive vice president of its operations division, effective Jan. 4. Reporting to President and CEO Jerry Garland, Smith will be responsible for the wholesaler’s operations, corporate distribution, corporate services and IT.

Smith joined AWG in 2003 as director of real estate and was promoted to director of member services for its Nashville division in 2007, the company said. AWG named him vice president of merchandising for its Memphis division in 2009, and later senior vice president and division manager, leading the startup of the company’s Gulf Coast division.

Prior to joining AWG, Smith served in various management positions at wholesalers such as Malone & Hyde and Fleming, AWG noted.