United Natural Foods Inc. A record $ 6.9 billion in the second quarter of the fiscal year 2021, with cross-selling, e-commerce, and professional services seen as continued success in the way food is distributed.
“Momentum continues to grow across all our businesses. We have delivered impressive results in executing our strategy. This quarter’s results clearly show that. This is what we have done to improve shareholder value,” Chief Executive Steve Spinner said on Wednesday in his profit. morning. Named.
In the second quarter of the fiscal year 2021, the sale of natural foods and traditional foods to retailers selling only one type of food and another type of food generated US $ 90 million in revenue, and since 2018 UNFI has acquired competing distributors SuperValu. This generated $ 500 million in revenue. He added that by the end of the 2022 fiscal year, the total could reach $ 1 billion.
The company also benefited from the growth of sales of its own brand. Testa said UNFI has shipped more than 5,000 of its 200 products and plans to launch 200 new products this year. He explained that compared to many well-known brands, their own branded products would likely have their own inventory fill rate 1000 basis points higher than that of national brands.
Testa said the UNFI Essential Everyday product line (including a variety of grocery and household products) has multiplied growth through the uptake of available groceries and larger grocery customers.
He noted that sales of Field Day, an organic brand that can only be bought by independent retailers, are up 30% year over year in both major categories and new products.
E-commerce sales also increased profits by 97%, which was driven by new customers and sales to the “largest e-commerce company” (possibly Amazon), increasing UNFI’s profits.
“We estimate that 70% of freelancers and a greater percentage of retail chains now offer e-commerce solutions to their customers, and UNFI provides the digital platform and support to help our customers succeed,” said Testa. In fact, since the start of the epidemic, we’ve added hundreds of new customers to our eCommerce platform solutions, and we’re still doing more. ”
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UNFI is about to launch a new B2B e-commerce platform Community Market, which will help retailers find new products and local fashion brands. These brands will not use traditional distribution centers directly but will ship directly to retailers across the country.
Testa said, “This gives our customers access to a variety of products, which are characterized by flexible order sizes and can be easily ordered from multiple sources on the Internet in one place.” This provides a resource for emerging brands, the 30,000 UNFI customer sites accessible through a simple platform (which can be distributed through the company’s CD).
“We believe the community market is a disrupted digital innovation that connects a growing brand to our customers and ultimately provides greater freedom in choosing food for the end consumer,” said Testa. He added that more information will be provided in the third-quarter earnings conference call.
In the new professional services offered by the UN international financial institutions, retailers have the option to use digital currencies such as Bitcoin.
“Coin Cloud is a small self-service terminal that allows consumers to use cash to buy, sell or exchange digital currency without a bank account or debit card,” said Testa. “We have signed 80 contracts to date, and we see that this can be expanded to more than 4,000 UNFI locations.”
The company will also continue to improve and automate the distribution center, which is expected to double the productivity of the distribution center in the function of the number of groups per hour. This is expected to save money and improve order execution accuracy.
Spinner also announced that, in accordance with the Board’s requirements, he has agreed to continue serving as CEO beyond the end of this fiscal year.
Spinner said, “COVID has made the process a bit complicated and the board has asked me to extend the timeline to ensure we continue with an inclusive process. I am committed to staying until I can hand over the position to the new CEO. United is an exciting new leader. ”