Sources: Kehe to gain New Seasons account

United Natural Foods, which a week ago acknowledged it was losing a $400 million natural and organic food distribution account with Albertsons to rival Kehe, evidently is losing another significant customer, SN has learned.

Kehe this week is expected to announce that New Seasons Markets, the natural/organic chain based in Portland, Ore., will switch its primary distribution account from UNFI to Kehe, sources told SN. Although precise figures were not immediately available, New Seasons represents nearly $100 million in annual sales for UNFI, according to published reports.

A source told SN Tuesday that UNFI is not required to disclose changes in business of less than $100 million, as it did last week when it announced the early termination of its Albertsons contract.

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Naperville, Ill.-based Kehe, which on Monday confirmed it had successfully won the distribution business for Albertsons, declined immediate comment on New Seasons. It has said it was expanding its facilities in Portland.

A spokesperson for UNFI, based in Providence, R.I., was not immediately available for comment.

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