Supervalu to take over Marsh distribution

Supervalu on Tuesday announced it has entered into a long-term supply agreement with Marsh Supermarkets to serve as its primary grocery wholesaler and to provide certain professional services.

Indianapolis-based Marsh operates approximately 70 stores under the Marsh Supermarkets and O’Malia Food Markets banners across Indiana and Ohio, and 38 pharmacy locations.

Marsh since 2011 has been served by C&S Wholesale Grocers. The switch to Supervalu marks one of the first major account shifts under Supervalu's new CEO, Mark Gross, who has said he intends to grow the company's wholesale business as it spins off its Save-A-Lot retail division. Marsh had estimated sales of $924 million in 2015, according to SN Top 75 and Top 50 data.

“Marsh Supermarkets is a terrific grocery chain that has served customers and communities across Indiana and Ohio for 85 years,” Gross said in a statement. “Their shoppers have come to expect quality, value and a great fresh experience, and we’re pleased Marsh has entrusted us for this business going forward. This is a wonderful opportunity for us to combine both our wholesale and logistics experience with our professional service offerings to deliver a comprehensive solution for them.”

In its role as primary wholesaler, Supervalu will supply all Marsh and O'Malia with traditional product categories including produce, meat, deli, bakery, seafood, grocery, frozen foods and dairy.

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Additionally, Marsh customers will benefit from Supervalu's comprehensive private brand offering, including its three popular grocery brands, Wild Harvest, Culinary Circle, and Essential Everyday.

Additionally, Supervalu will provide certain professional services and merchandising support to Marsh, including advanced merchandise planning, strategic retail pricing analysis, and shelf management programs. Marsh will also benefit from the company's new SV Insights business intelligence tool and mobile order entry system.

“It’s great to see this growth in our wholesale business, and I’m also excited about what this means for the growth in our broad services offering,” Gross said.

The transition of stores is expected to be completed by approximately the end of September.