Special Report: UNFI

Special Report

UNFI

United Natural Foods Inc. (UNFI) was founded in 1976 by Michael Funk and has grown to become one of the leading sources of sustainable organic and natural foods in the grocery industry. The company has more than 5,000 products across 200 categories. According to company leaders, UNFI is comprised of a team of wholesalers that provide one of the largest assortments of products to customers throughout North America. Whether the customers are natural product superstores, independent retailers, conventional supermarket chains, e-commerce retailers or food service customers, UNFI has a broad range of products to meet all of their individual needs.

Despite the unpredictable past two years, UNFI has maintained its support for retailers and their customers by navigating through the uncertainty. The distributor has kept shelves stocked and wholesome and nutritious food accessible through new e-commerce partnerships and strategic leadership promotions and appointments. These moves have allowed the company to not only maintain its strong presence within the industry but also proven to its partners they can count on UNFI during unpredictable and unprecedented times.

History

In 1976, Michael Funk began selling organic produce out of his car but soon created Mountain People’s Warehouse in Auburn, CA. Funk had an idea to go where other distributors had not gone before, and this idea became a turning point for the company. The following year, Norman Cloutier opened Cornucopia Natural Foods in Rhode Island. He then transformed the company into a warehouse for wholesale distribution. In 1996, Cornucopia joined forces with Mountain People’s Warehouse to form UNFI.

The years after the merger saw several expansions and acquisitions, and UNFI became the largest full line natural foods distributor in the Western US. Another turning point in the company’s history was in 1998, when Albert’s Organics, the first certified organic distributor, joined UNFI and helped build relationships with organic farms around the world. This better enabled UNFI to become a leading source of sustainable organic and natural foods. The company continued to add brands and companies to its name such as Select Nutrition Distributors, Roots ‘N Fruits Cooperative, Millbrook Distribution Services and SunOpta Distribution Group, which was one of the company’s first Canadian partnerships.

It wasn’t until 2012 when UNFI added Honest Green to its establishment that the company really began to strengthen its e-commerce business within the natural product sector. The company had a longstanding focus on produce until 2014, when UNFI added Tony’s Fine Foods, which added specialty protein, cheeses, deli and bakery items. In 2018, UNFI acquired SUPERVALU. This was a strategic move with leaders from both sides describing the combined company as “North America’s premier food wholesaler.” The acquisition was expected to expedite the company’s growth strategy by instantly upgrading the variety and collection of products they offer on their shelves. Since its inception, the company has considered each acquisition or ‘move’ a resolute, effective step toward better serving its customers and communities.

Leadership

The company continued to move forward despite external circumstances that might have set back its competitors. The company has focused on its leadership team and finding the right people to help guide it through Covid achieve its goals and hold up UNFI’s mission and responsibilities to consumers it serves. There have been many key, strategic appointments that occurred on the leadership team in 2021.

The company has recently announced the promotion of Steve Dietz to the role of Chief Customer Officer, which is a new role the company has created. Dietz is responsible for overseeing UNFI’s sales efforts throughout the US and Canada. He has been serving as the company’s President of the Pacific Region since 2018 and has helped UNFI shape and achieve its long-term goals.

In June, the company announced the appointment of J. Alexander Miller Douglas to the role of CEO and a member of its Board of Directors. Douglas has a track record of being a customer-focused, strategic leader with expertise in distribution, sales, marketing and e-commerce.

In May, UNFI promoted Matt Whitney to Chief Strategy and Innovation Officer after he joined the team in early 2020. Whitney is now responsible for leading the company’s Professional Services and E-commerce business units.

Recent News

Recently the company has been making several moves to keep up with the ever-changing market. In October 2021, UNFI partnered with DoorDash to bring cutting edge grocery delivery solutions to independent retailers across the country. The partnership allows for local grocery retailers to take advantage of the platform DoorDash has created to help set up an e-commerce presence that addresses consumers’ needs. Delivery services have become an important, relevant part of the industry, and according to the company, the partnership will allow for UNFI to grow its end-toend and last-mile-delivery services to its e-commerce solutions targeted for retail partners ranging from smaller mom and pop shops to big box.

UNFI’s decision to join forces with DoorDash is intended to assist indie grocery retailers expand their business, drawing in new consumers while simultaneously maintaining its current shopper following through serving additional online shoppers, particularly those residing in less accessible areas. Taking added convenience and combining it with a broader delivery area is expected to propel shopper loyalty and drive basket rings specifically amongst the digital consumer base. “We are excited to work with UNFI to empower local grocers to build an e-commerce and delivery offering that will give customers access to robust local grocery selection on the DoorDash app,” said Fuad Hannon, VP of New Verticals at DoorDash. “We are proud to play a part in helping local grocers grow their businesses and helping consumers access convenient, on-demand grocery delivery from their local neighborhoods.”