The Friday Checkout: Distributor disruption signals an evolving industry

Miami Herald

a day ago

C&S Wholesale Grocers' announcement this week that it has agreed to take over SpartanNash is more than just another development on the M&A front. It's a reminder that the distribution sector is undergoing fundamental shifts that are poised to ripple across the industry.
Like supermarket companies, grocery distributors benefit from scale, as C&S and SpartanNash made clear when announcing their deal. The companies are positioning their merger as a way to bring down grocery costs, noting that the efficiencies they stand to gain by coming together will allow them - and the grocers they serve - to become more competitive. They also described their deal as a way to help alleviate food deserts and improve people's access to pharmacies.
News of that deal came on the heels of a cyberattack that brought fellow distributor UNFI to a standstill. UNFI said Friday it has resumed taking online orders, but the disruption brought home in a very public way the fact that grocers depend heavily on large distributors to keep their shelves stocked.
UNFI, C&S and SpartanNash are all confronting a future where scale, security and efficient operations are paramount for success. C&S's move to bolster its operations by combining with SpartanNash reflects a laudable goal of helping strengthen a grocery supply chain that has shown itself to be surprisingly fragile. The question now is whether the two companies will be able to deliver on that promise.
In case you missed it
Grocery trade groups endorse bill that would block SNAP/EBT fees
The National Grocers Association and FMI - The Food Industry Association both announced this week that they support proposed congressional legislation that would prohibit state-imposed processing fees on Supplemental Nutrition Assistance Program (SNAP) electronic benefit transactions.
The bipartisan measure would make permanent a ban on the fees that was part of the 2018 Farm Bill. The legislation, known as the EBT Act, is intended to ensure that retailers are responsible only for their own costs as the federal government updates the technology used to process SNAP EBT transactions.
"The EBT Act is a necessary and common-sense solution to protect community-based retailers from new swipe fees that could compromise their ability to provide SNAP benefits and threaten food access in low-income areas, Stephanie Johnson, group vice president for government relations at NGA, said in a statement.
Grocery data-analysis firms merge
Data analytics company SPINS has acquired pricing and promotions specialist Datasembly, the companies announced on Tuesday. Terms of the deal were not disclosed.
The combination will unite the real-time pricing, promotion and assortment information Datasembly collects with the product and category data gathered by SPINS, which focuses on the wellness-focused CPG sector, the companies said in a press release.
Big Y to provide employees' tuition benefits for employees
The New England grocery chain announced Thursday that it will provide its workers with tuition benefits at the University of Phoenix as part of an agreement it reached with the university.
Eligible curriculum at the online college for Big Y employees includes select business-related programs. The partnership also provides college credit for "relevant life experience and the opportunity to learn in-demand skills that can positively impact career trajectories," Big Y said in a press release.
Impulse find
Aldi starts them young
Aldi commemorated Father's Day on its LinkedIn page with a photo of a father and infant son in matching outfits. What was the duo wearing? Personalized Aldi polos, of course.
Carl, a store manager based in the discounter's Tully, New York, division, was featured on Aldi's page alongside his seven-week-old son, Carl (yes, their names match just like their polos). After 13 years in the grocery industry, Dad Carl took parental leave and commemorated his first day back on the job by dressing up his son in the same Aldi uniform he wears.
"To say it was tough to go back after 7 weeks is an understatement, but I'm glad to be back with a routine in place. So everyone, meet Baby Carl. Future ALDI [team member]!" Dad Carl said in the LinkedIn post.
The post underscores how Aldi is finding ways to bring more heart and personality to its social media presence.
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