MESA, Ariz. -- Megafoods Stores here has terminated its cost- and revenue-sharing supply agreement with Fleming Cos. in three Western states and signed a new supply contract with Safeway. Under that contract, Oakland-based Safeway will supply at least 51% of the needs of Megafoods' 34 stores in Arizona, California and Nevada from its Tempe, Ariz., distribution center. That facility reportedly is capable of handling $1.5 billion of volume, though it is doing only about $500 million ...

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