United Natural Foods, Inc. UNFI has made a strategic move to realign its wholesale business by splitting its natural and organic divisions. This restructuring is part of the company’s broader effort to strengthen its market position, streamline operations and enhance its focus on the growing demand for natural and organic products.
By separating this division, UNFI aims to advance its multi-year strategy, which focuses on delivering more customized value for both its customers and suppliers while driving profitable growth. As part of its ongoing strategy, UNFI will realign its commercial wholesale organization into two separate divisions defined by its products – Conventional Grocery Products and Natural, Organic, Specialty & Fresh Products.
Each of the newly structured divisions will be supported by specialized sales teams focused on the unique product and service needs of the 30,000 retail locations UNFI serves. These teams will work closely with functional experts in merchandising, operations, procurement and supplier services to deliver more tailored and efficient solutions.
UNFI will establish capability centers of excellence in key areas such as supply chains, professional and digital services and private brands. These centers will collaborate across the divisions, providing support to sales leaders and helping to create customized programs aimed at accelerating growth for customers and suppliers.
This realignment is a crucial step in UNFI’s plan to enhance value and improve operational efficiency and empower its commercial teams to deliver a more customized and service-focused experience.
This approach is designed to enable customers and suppliers to differentiate themselves in the marketplace, effectively compete and drive profitable growth. The company’s goal is to foster a more responsive, efficient and effective operating model, ultimately strengthening relationships and supporting the long-term success of all stakeholders involved.
United Natural Foods’ natural and organic business continues to exhibit impressive growth, driven by heightened consumer demand for healthier and more sustainable products. The company’s private brand offerings within this segment are expanding significantly, with growth rates ranging from mid-single digits to mid teens across individual brands. This aligns with broader consumer trends favoring “better-for-you” products, which have proven resilient and increasingly popular.
Lean management principles have become a key focus of UNFI’s operational strategy, helping to drive cost savings and improve efficiency throughout the organization. One of the notable initiatives in this strategy has been the optimization of its distribution network.
UNFI has strategically closed underperforming facilities in Billings, Bismarck and Fort Wayne, transitioning operations to larger, more efficient centers. This move has allowed the company to streamline its logistics while retaining most of the business, ensuring a more effective and cost-efficient distribution model.
This Zacks Rank #1 (Strong Buy) company’s shares have gained 47% in the past three months against the industry’s decline of 9.4%.
