United Natural Foods (UNFI) terminates supply agreement with Key Food Stores

In May 2025, United Natural Foods (NYSE: UNFI) and Key Food Stores Co-Operative, Inc. (“Key Food”) mutually agreed to terminate the Amended and Restated Northeast Supply Agreement, dated June 3, 2021, as further amended (the “Agreement”), pursuant to which the Company served as the primary grocery wholesaler to Key Food locations in the Northeast. The Agreement will terminate on or around September 20, 2025, and Key Food’s conventional products business in the Northeast will transition to another wholesaler. The Company believes this is a positive outcome for both parties. The Agreement allows the Company to exit an unprofitable relationship and further strengthens the Company’s progress toward its longer-term strategic and three-year financial objectives.
In conjunction with the termination, the Company intends to discontinue operations at its Allentown, Pennsylvania distribution center, consistent with efforts to optimize its distribution network and improve service to local customers and suppliers. Other customers currently serviced out of Allentown will be serviced from nearby facilities that the Company believes can continue to service them efficiently and effectively.

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