What is in this article?:
- UNFI reports Q1 profit decline, intent to expand in Canada
- What does UNFI's Canadian expansion mean for U.S. natural brands?
While United Natural Foods Inc.'s first quarter earnings rose, its profit dropped compared to last year. But that's not stopping the giant natural and organic distributor from setting its sights on expanding in Canada.
On Nov. 30, United Natural Foods Inc. (UNFI) announced its focus on continued expansion in Canada along with its first quarter 2012 earnings. UNFI's recent acquisition of R.K. Sethi Distribution, a specialty food distributor in Vancouver and Toronto, primes the distributor to grow its Canadian business to 10 percent of the company's total sales. Steven Spinner, president and CEO, said UNFI will "take a breather" from pursuing growth among large supermarket chains in the U.S., reports Supermarket News.
The largest publicly traded wholesale distributor to the natural, organic and specialty industry in Canada and the United States reported that sales increased 15.6 percent to $1.2 billion over net sales recorded in the first quarter of 2011, ended Oct. 29. Newly acquired Whole Foods Market's inventory and distribution assets generated $25.4 million.
Profit decreased by 12.9 percent to $15.2 million, a result of adding new customers, freight costs and a restructuring of UNFI's specialty division, the company reported. "Looking forward, we'll have an enhanced focus toward driving efficiencies and expense control as we continue to adapt to higher growth in lower margin customers," said Steven Spinner, president and CEO.