BYRON CENTER — Grocery retailer and distributor SpartanNash Co. is leveraging a long-standing relationship with a West Coast partner to expand its distribution business.
The Byron Center-based SpartanNash (Nasdaq: SPTN), which already distributes throughout all 50 states, announced today that it would develop new operations at a 500,000-square-foot facility in Stockton, Calif.-based, a venture executed by Coastal Pacific Food Distributors Inc.
The two companies have maintained a relationship for over 25 years.
“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,” SpartanNash President and CEO Tony Sarsam, said in a statement. “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.”
Not only will the new operation help SpartanNash to more effectively serve both existing and new clients, but also the arrangement comes with significant environmental benefits, according to the executives. The company estimated that by opening operations at the facility beginning in March, it will save 1 million gallons of diesel gas on an annual basis.
“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 Officer Dave Petko, who took his post in April of 2021.
“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.”
SpartanNash supplies food to 145 of its own grocery stores in addition to 2,100 independent grocery retailers throughout the country.
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