May 18, 2013
(Wall Street Sector Selector, 3/1/11)
Shares of United Natural Foods (NASDAQ: UNFI) are lower on the session by 1.55%, trading at $41.79. Overall put volume is now running at 5.66x the daily average, with 66% of all puts traded being purchases on the offer. 5,375 contracts have traded on t...
United Natural Foods, Inc. (Nasdaq: UNFI) announced today that it has completed the previously announced public offering of 4,427,500 shares of common stock, which includes 577,500 shares issued pursuant to the underwriters'...(read more)
Citigroup believes that while United Natural Foods (NASDAQ: UNFI) announces a secondary offering of 3.85M shares, the trends will likely remain strong for the company and that sales growth will continue to accelerate. In its report,...(read more)
United Natural Foods (UNFI) Company Overview
Headquartered in Dayville, Connecticut, United Natural Foods, Inc. (UNFI) is the leading domestic distributor of natural and organic products, providing over 40,000 stock keeping units (SKUs) to more than 17,000 customers. The products include: grocery and general merchandise (52% of the portfolio), produce/perishables (15%), frozen foods (13%), bulk and food service products (8%), nutritional supplements and sports nutrition (7%), and personal care items, regional, national, and private brands (5%). Customers include independently owned natural product retailers (44% of revenues in fiscal 2007) supernatural chains (37%), comprising small and large chains of natural foods supermarkets mass markets (15%), situated across the U.S. foodservices (2%) and others (2%). The company's largest customer is Whole Foods Market, which represents 28% of total sales, while Wild Oats Markets currently accounts for 9% of revenues. Whole Foods Market has been a major customer since 1996. In October 2006, the company renewed the primary distribution agreement with Whole Foods Markets until September 2013. During the third quarter of fiscal 2004, a five-year distribution agreement with Wild Oat Markets, Inc. was also renewed. The company also owns and operates a few retail natural product stores, located primarily in Florida. United Natural Foods' strategy includes an active acquisition program in order to benefit from economies of scale. Since 1985, the company has completed several acquisitions, including Select Nutrition Distributors in December 2004 and Milkbrook Distribution Services in November 2007. Select Nutrition is a supplier of branded vitamins, herbs, dietary supplements, and health and beauty aids to health food stores, pharmacies, practitioners, sports clubs, and spas.
United Natural Foods is a growth company in a growth industry. The $46 billion Natural Products sector is growing 8% versus 2% for the overall grocery industry. The company's top-line is expanding at double-digit rates, driven by acquisitions, organic growth initiatives, and incremental distributor agreements. National purchasing power and key relationships with leading natural products retailers are two of the company's key competitive strengths. For instance, in October 2006, the company signed a seven-year primary distribution agreement with Wild Oats Markets, which added the Southern Pacific region of Whole Foods, which includes Southern California, Arizona and Southern Nevada. Management believes the amended agreement, along with other new business gained in the first fiscal quarter of 2007, should add an incremental $95 million to $105 million in sales on an annualized basis. In addition, the company claims to have the highest service levels in the natural products industry, with over 98% order fulfillment rates and a capability for fast delivery. The company also enjoys competitive market share with total market share having increased to 8.3% in fiscal 2005 from 6.9% in the year-earlier period.(Read more at Wikinvest )