Supervalu has snagged a major new wholesale customer, Indianapolis-based Marsh Supermarkets.
Eden Prairie-based Supervalu Tuesday announced a long-term agreement with Marsh to serve as its primary grocery wholesaler. Privately-held Marsh operates about 70 stores under the Marsh and O’Malia banners across Indiana and Ohio.
In addition to distributing branded foods, Supervalu will sell its private label products to Marsh. Supervalu will also provide Marsh with some professional services -- back-office work -- and merchandising support.
“It’s great to see this growth for our wholesale business,” Supervalu CEO Mark Gross said in a press statement.
Marsh’s primary grocery wholesaler has been C & S, one of Supervalu’s biggest competitors.
While Supervalu owns Cub Foods and other retail chains, its largest business is wholesaling, which made up 45 percent of its $17.5 billion in revenues during its most recent fiscal year. Supervalu is the primary supplier for 1,796 independent retail supermarkets across 40 states.
But last year was a weak one for Supervalu’s wholesale business. Revenues fell 3.2 percent as some customers experienced softer sales, while Supervalu lost some wholesale business in the Southeast.