SpartanNash re-ups private-label pact with DeCA
Three-year extension with U.S. Defense Commissary Agency runs through 2025
March 24, 2022
Grocery distributor SpartanNash has extended its contract to supply private-brand products to the U.S. Defense Commissary Agency (DeCA) to Dec. 15, 2025.
The three-year extension comes after DeCA initially selected SpartanNash as its DeCA private-label supplier in December 2016, the Grand Rapids, Mich.-based distributor said Thursday. In its fiscal 2021 10-K filing with the Securities and Exchange Commission (SEC), SpartanNash reported that almost 1,000 SKUs of private-brand products were in the DeCA system as of Jan. 1, 2022.
SpartanNash supplies private-label and national-brand goods to the armed forces through its MDV military distribution arm, based in Norfolk, Va., as well as through Coastal Pacific Food Distributors, its West Coast distribution partner. The private-brand products provided run the gamut of categories, from dairy, poultry, seafood, center-store groceries and natural/organic foods to tabletop, health care, beauty care, pet supplies, baby care and home goods.
“We are proud and grateful that DeCA has entrusted SpartanNash with a three-year contract extension as we work to strengthen our partnership in service of America’s military heroes and their families,” SpartanNash Chief Customer Officer David Sisk said in a statement. “SpartanNash’s mission is to deliver the ingredients for a better life, and our global supply-chain network enables us to bring that taste of home to those who are serving our country away from theirs.”
SpartanNash distributes groceries to 160 military commissaries and more than 400 exchanges in the U.S. and globally.
DeCA operates 236 commissaries on U.S. military installations worldwide, which sell roughly $4 billion of grocery products annually, according to SpartanNash. Overall, SpartanNash distributes grocery products to 160 military commissaries and more than 400 exchanges in 39 U.S. states and the District of Columbia as well as in Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar and Djibouti.
Five of SpartanNash’s 18 distribution centers — in Norfolk; Oklahoma City; Bloomington, Ind.; Landover, Md.; and Pensacola, Fla. — serve the company’s military segment exclusively, while two more DCs — in Columbus, Ga., and San Antonio, Texas — provide service to both its military and food distribution businesses. In its 10-K report, SpartanNash stated that it’s one of fewer than four U.S. wholesalers with over $100 million in annual sales to DeCA commissaries that distributes products via the frequent delivery system, whereas other distributors supplying DeCA tend to be smaller regional and local providers. SpartanNash said its military DCs are located among the largest concentration of military bases in its market areas and near Atlantic ports.
In 2021, SpartanNash said its MDV division delivered more than 70,000 loads to domestic military families and 7,800 containers and 16 emergency airlifts to troops stationed overseas. For fiscal 2021, the military segment generated net sales of more than $1.89 billion, or 21.2% of SpartanNash’s total net sales for the year.
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