United Natural Foods Inc (NYSE: UNFI) is a wholesale grocery distribution company that procures and distributes food products to retailers across the United States and Canada. It makes money by marking up vendor listed base costs on products sold to customers, with gross margins expressed as a percentage fee on top of the underlying cost, varying by customer, product type, vendor size, volume, and transportation factors. UNFI serves over 30,000 customer locations, ranging from large grocery chains to smaller retailers, and operates two product-centered wholesale divisions: Conventional Grocery Products and Natural, Organic, Specialty and Fresh Products (as of FY2025). One customer constituted more than 10% of total net sales in FY2025. Net sales were $31.8 billion in FY2025 (52 weeks ended in fiscal year 2025), up from $31.0 billion in FY2024 (53 weeks). International sales, primarily through UNFI Canada, represented approximately 1% of net sales in FY2025.
- Revenue model
- Transactional wholesale distribution. UNFI earns a percentage mark-up, or fee, on top of vendor listed base cost for each product sold to customers. Pricing varies by customer, product type, vendor size, volume throughput, and transportation method and distance. Vendor funds received and inbound freight are included in inventory cost determination.
- Products and services
- UNFI distributes conventional grocery products and natural, organic, specialty, and fresh products through two wholesale divisions established in FY2025. It also operates retail grocery stores under its own banners. Additional services include a business-to-business digital eCommerce platform called Marketplace by UNFI, which connects emerging brands with UNFI customers, and capability centers covering supply chain, professional and digital services, and private brands.
- Customers and end markets
- Over 30,000 customer locations across the United States and Canada as of FY2025, including large grocery chains, smaller independent retailers, and eCommerce companies. One customer (customers under common control) accounted for more than 10% of total net sales in FY2025. UNFI serves its largest customer under an amended and restated distribution agreement with a term through May 20, 2032.
- Value-chain role
- Wholesale food distributor and logistics intermediary sitting between food manufacturers and suppliers on one side and grocery retailers on the other. UNFI procures products under supplier contracts, manages inventory and distribution center operations, and delivers to customer locations. It also operates retail grocery stores that compete in the consumer-facing grocery market.
- Geographic exposure
- Primarily United States, with a distribution network spanning multiple regions including East, and operations in states such as Pennsylvania, California, Florida, Washington, Texas, Colorado, New York, New Jersey, Wisconsin, Connecticut, Indiana, Iowa, South Carolina, and New Hampshire, among others. Canadian operations through UNFI Canada, with facilities in Ontario and British Columbia, representing approximately 1% of net sales in FY2025.
- Competitors
- traditional grocery stores, specialty grocery stores, supercenters, deep discounters, mass merchandisers, limited assortment stores, eCommerce grocery providers, other wholesale distributors, self-distributing retailers
