Food Service & Agriculture and Retail

Food distributor connects to Amazon

May 31, 2016
| By Pat Evans |
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SpartanNash Truck
SpartanNash trucks travel more than 58 million miles per year, including 12 million in just Michigan. Courtesy SpartanNash

A local food distributor recently discussed its new relationship with Amazon.

During SpartanNash’s first-quarter earnings conference call with financial analysts, EVP and COO Dave Staples touched on a “relatively new” relationship with Amazon, which has created volume “greater than we expected, and we believe that it has significant growth potential.”

The relationship largely involves SpartanNash distributing products to Amazon distribution centers. The primary offerings that SpartanNash helps supply are Amazon Prime Now and AmazonFresh.

“This relationship is a great example of our commitment to pursuing solutions for difficult logistic issues, and we continue to look at opportunities to grow sales with other non-traditional customers,” Staples said during the call.

“As a result of the hard work provided by our sales teams and our growing reputation, we continue to feel positive about our current sales pipeline in both traditional and alternative sales channels, as we focus on providing supply chain solutions for a variety of industries.”


The net sales for Byron Center-based SpartanNash in the first quarter of fiscal 2016 were $2.27 billion, down from $2.31 billion during the same period last year, and net income was $9.8 million, down from $10.3 million

The distribution segment of SpartanNash had sales of $991.1 million, up from $986.4 million. Operating earnings in the segment increased to $25.8 million from $20.2 million.

Sales in the retail segment decreased from $626.8 million to $613.1 million, due to retail and fuel center closures and lower fuel prices. Retail operating losses increased to $7.6 million from $2.5 million.

SpartanNash also announced an 11-percent increase to its quarterly dividend, up to $0.15 a share, for an annual rate of $0.60 per share.

Shares of SPTN were up roughly 6 percent to $29.71 as of Tuesday afternoon on Nasdaq. 

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