Dive Brief:
- United Natural Foods, Inc. announced Wednesday it is restructuring its commercial wholesale business into two “product-centered” divisions. One division will focus on conventional grocery products while the other will center on natural, organic, specialty and fresh products.
- Louis Martin, currently UNFI’s wholesale president, will become the company’s chief commercial officer and president of conventional grocery products. Chief Supply Chain Officer Mark Bushway will also take on the role of president of the wholesale division for natural, organic, specialty and fresh products.
- UNFI said the realignment of its wholesale business is part of its multi-year strategy to drive profitability.
Dive Insight:
The two new wholesale divisions will each have dedicated sales teams and will receive support from experts in merchandising, operations, procurement and supplier services, according to the press release. However, a company spokesperson said the wholesale business change will result in an unspecified number of role shifts and eliminations.
The company noted that its supply chain, professional and digital services, and private brands capabilities will work across the two divisions to support the sales teams in building customized programs for customers’ and supplier’s growth initiatives.
“By empowering our commercial teams to provide a more customized product and service-centered experience, we intend to help our customers and suppliers differentiate, compete, and grow profitably through a more responsive, efficient, and effective operating model,” UNFI CEO Sandy Douglas said in a statement.
During its most recent earnings report, UNFI recorded a year-over-year net sales increase of 4% and a net loss of $21 million — down from the $39 million loss during the same period a year ago.
During the company’s first quarter, its wholesale business saw “changes in business mix at both the customer and the product level, lower procurement gains, and ongoing strategic commercial investments,” UNFI President and CFO Matteo Tarditi, who stepped into the roles in April, told investors in December.
The changes to its wholesale business follow UNFI’s push to strengthen its business with retail customers and suppliers alongside efforts to streamline its operations as it looks to improve its financial performance. Last year, UNFI launched a retail media network in partnership with Swiftly and expanded the products and services showcased at its selling shows.
At the end of last year, the grocery wholesaler confirmed plans to lay off 121 employees in January at its office in Lincoln, Rhode Island, and relocate its corporate headquarters from Lincoln to Providence, Rhode Island. The company spokesperson said this layoff was not connected to the wholesale business changes.
In mid-2023, UNFI reduced its operating regions from four to three and cut 150 jobs, mainly in management and supervisory roles.
