A&P, C&S Discuss New Supply Deal

MONTVALE, N.J. — A&P is negotiating a new supply contract with C&S Wholesale Grocers that would serve its stores as well as the Pathmark locations A&P plans to acquire. “We’ve been working closely with C&S, and we’ve jointly come to the conclusion that the best thing to do is to take the contracts, tear them up, and put new contracts in place,” Christian Haub, executive chairman of A&P, said during the Friedman Billings Ramsey Growth Conference in New York yesterday. C&S currently serves Pathmark under a deal lasting through 2013 that is largely considered to be onerous for the retailer. A&P has 13 years remaining on a deal it struck with C&S two years ago. “I think they [C&S] realize we are by far their largest customer and their success, or lack of success, depends on our success,” Haub said. He added there was “a lot of upside” for C&S to get a new contract, in terms of simplifying product slotting, private-label offerings and logistics. “It’s just a matter of getting to a place that’s fair,” Haub said.

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