WINTER HAVEN, Fla. -- Sam's Club, a division of Wal-Mart Stores, will switch to direct distribution of produce to 40 clubs from a new distribution center opened here.
now be supplied by the new Wal-Mart Supercenter Distribution Center.
Fresh America will continue to supply about 330 Sam's Clubs nationwide, according to the company.
"Our 1995 distribution agreement has always provided that, under certain conditions, Sam's Club could take over distribution for a limited number of clubs each year which it wanted to service internally," said David I. Sheinfeld, chief executive officer and chairman of the board for Fresh America, in a statement.
"As a result of the other provisions in that agreement, adjustments will be made with respect to the Sam's Clubs continuing to be serviced by our Atlanta Distribution Center so that throughout the remaining period of the agreement, our margins from that territory should not be adversely affected."
Officials for Fresh America expect the transition will occur in March and April of this year, and predict it will not have an adverse effect on results of its operations.
Fresh America is an integrated food distribution management company that operates 10 distribution centers in various parts of the country.