I see Kroger beat estimates:
and says:"It has focused on improving customer service such as with faster checkouts, expanding offerings in such areas as organic foods, and adding store formats such as Marketplace stores that are double the typical size of a Kroger store and also sell furniture, office supplies and other nonfood goods."
Per chance does UNFI supply them?
As a former driver 4 UNFI, originally known as Cornucopia natural foods. Now a driver for Frito, a Pepsico company I live near the DC here in Conn. Its my opinion that those big stores get thier private label stuff drop shipped or if nearby the Manf. they'll back haul it. But thats just the big seller scu's I would think they still need about 80% of this industries products stored and delivered by a source such as United or Tree. As well though rare ya got those exclusives. Like Stow Mills "part of the UNFI family" used to have with "Shiff vitimins" but when Cornucopia bought a dist. in NJ. who had the rights to the Shiff line, in turn Cornucopia aquired the rights to the Shiff line. I don't know whats gonna happen to this stock, UNFI,made up from many company aquisitions is very powerful in the natural food industry. I know this food is slightly more expensive then conventional foods for a few reasons but there is demand. They could sell out to a mega dist that can handle the SCU's or merge? I'm not sure of the Margin percentages. As Cornucopia the spread described as A,B,C, customers. "A" being the big box stores and "c" the Mom & Pop stores. 30% to "A" stores 30% to "B" stores and 40% to the Mom & Pop "c" stores, whom were much more profitable to us. As I understand it now, the "A" big box stores whom get the stuff at like cost plus 10 or better. are a bigger part of Uniteds bus. 70% I don't know? I think its a good solid stock to hold depending on your intentions. The food has to become more affordable to the mainstream public along with awareness to the upside of the goods. Keep your eye on the insiders...
Wooglin, how goes it? No, I did not. However, since 10% of sales in FY06 were to OATS, it won't take long to make up for margin issues with WFMI in same-store sales and new store sales. 17.8% of the float was borrowed. It's still too high. I think someone or several funds bet wrong.
Flagwaver - here's a paragraph from the RBC announcement:
United Natural Foods, Inc. carries and distributes more than 40,000 products to more than 18,000 customers nationwide. The Company serves a wide variety of retail formats including conventional supermarket chains, natural product superstores, independent retail operators and the food service channel. United Natural Foods, Inc. was ranked by Forbes in 2005 as one of the "Best Managed Companies in America," ranked by Fortune in 2006 and 2007 as one of its "Most Admired Companies," and ranked by Business Ethics as one of its "100 Best Corporate Citizens for 2006."
Best managed... most admired....best corporate citizen. Come on now, come over from the dark side.
flagerwrangler, I represent a private equity group. We are not an instituional investor. Thus, how we get our information is not the key point here. The accuracy of our research is the key point. Kroger is a UNFI customer.
I'm sure a big institutional invester like you can just contact Investor Relations and get your own personal copy of the annual report. But with your 15 Million Investment Group leadership, I'm sure even a pilgrim like you would know that. Hope you can fish better than you understand the dynamics of this industry.
I think it's fairly obvious that flaglerwrangler is either short or an institutional cronie. Kroger is only one of many big chains just starting to carry organic and private label products. UNFI will be servicing most of them. Don't forget Publix, Albertson's, Safeway, etc. Can you provide the Annual Report? Thanks My e-mail is firstname.lastname@example.org