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SpartanNash Extends Distribution Footprint with California Partnership
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
partnership
Rhea-AI Summary
SpartanNash announces a significant expansion of its distribution network with a new facility in Stockton, California, enhancing supply chain capabilities and supporting its environmental goals. The 500,000-square-foot center aims to reduce fleet mileage by 10% in 2022, saving approximately one million gallons of diesel annually. This move aligns with the growing demand from national food retailers and reinforces SpartanNash's commitment to improving operational efficiencies while supporting sustainability initiatives.
Positive
Expansion of distribution network with a new facility in Stockton, California.
Expected to save approximately one million gallons of diesel annually.
Supports environmental goals by reducing fleet mileage and greenhouse gas emissions.
Negative
None.
West Coast expansion supports network optimization strategy, bolsters national account business, and advances company goal of eliminating 10% of fleet mileage in 2022
GRAND RAPIDS, Mich.--(BUSINESS WIRE)--
Food solutions companySpartanNash(the “Company”) (Nasdaq: SPTN), today announced it is expanding its distribution footprint with new operations out of a facility in Stockton, Calif. The expansion – executed through SpartanNash’s long-standing partnership with Coastal Pacific Food Distributors, Inc. – enhances SpartanNash’s coast-to-coast supply chain capabilities, in addition to supporting the Company’s Environmental, Social and Governance (ESG) priority to reduce fleet mileage and greenhouse gas emissions.
SpartanNash Extends Distribution Footprint with California Partnership (Photo: Business Wire)
“Many of the national food retailers we distribute to are experiencing tremendous growth, which has been further propelled over the last two years due to COVID,” said SpartanNash President and CEO Tony Sarsam. “We are proud of the essential role that SpartanNash plays in the nation’s food supply chain. Having a West Coast presence allows us to provide faster, fresher and more cost-effective deliveries to our customers so they can ensure their shoppers have access to the critical food and household supplies they need.”
SpartanNash offers distribution in all 50 states, supplying 145 Company-owned grocery stores, more than 2,100 independent grocery retailers, and key national accounts that serve thousands of additional retail locations across the country.
“In the past year, we have made significant progress implementing our network optimization plan, and those efforts have already driven notable productivity improvements while also enabling us to better meet our customers’ evolving demands,” said SpartanNash Senior Vice President and Chief Supply Chain OfficerDave Petko. “The extension of our partnership with CPFD is another important step to ensure we have the right capacity in the right places and further enhances our operations and processes. In addition to enabling us to better serve our customers, our partnership with CPFD will positively impact the environment by augmenting our commitment to reduce our carbon emissions in 2022.”
The 500,000-square-foot, multi-temperature distribution center is expected to start serving existing and new SpartanNash customers starting in March. It will help drive supply chain efficiencies, saving an estimated one million gallons of diesel annually and representing the equivalent of more than 100 tankers of gasoline, energy for more than 1,000 homes for one year, or more than 20,000 barrels of oil. It is the carbon sequestered by more than 150,000 tree seedlings grown for 10 years.1
“Our partnership with SpartanNash goes back 25 years and is one we are very proud of,” said CPFD President and CEO Jeff King. “We have developed and provided supply chain solutions for customers in all channels of our food distribution, including a worldwide network for our military service members and their families based around the globe. We are incredibly excited to expand our partnership with SpartanNash to help bring necessary solutions for some of our country’s largest online and brick-and-mortar retail businesses that rely now more than ever on grocery items through our distribution channels. We look forward to the next 25 years of partnership.”
About SpartanNash
SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life through customer-focused innovation. Its core businesses include distributing grocery products to a diverse group of independent and chain retailers, its corporate-owned retail stores, and U.S. military commissaries and exchanges; as well as operating a premier fresh produce distribution network and the Our Family® brand. SpartanNash serves customer locations in all 50 states and the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar and Djibouti. The company owns 145 supermarkets—primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery and Dan's Supermarket—and shares its operational insights to drive solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 19,000 strong and growing. For more information, visit spartannash.com.
