MDI to Supply Piggly Wiggly Stores in N.C.: Report

ELLIOT ZWIEBACH

LUMBERTON, N.C. — Approximately 25 Piggly Wiggly stores in the eastern part of North Carolina are in the process of switching wholesalers — to Merchants Distributors Inc., Hickory, N.C., from Nash Finch, Minneapolis, industry sources told SN.

Alec Covington, president and chief executive officer of Nash Finch, said in a conference call last week the company expects revenues in its wholesale segment to drop between $22 million and $25 million in the current quarter as a customer in the Southeast, which he did not name, transitions to another supplier.

Nash Finch officials could not be reached for additional comment; an MDI spokesman declined comment. Wholesale volume at Nash Finch was approximately $2.7 billion last year, or 82% of the company's sales total of $3.2 billion; MDI’s volume was approximately $1.8 billion.

The Piggly Wiggly franchise is owned by C&S Wholesale Grocers, Keene, N.H. Sources told SN C&S has authorized MDI to distribute to some of its Piggly Wiggly stores. There were also reports another 30 or so Piggly Wiggly stores might switch to MDI from Nash Finch.

Read More of Today's Headlines