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EDEN PRAIRIE, MN-Supervalu Inc. has agreed to part of the grocery store distribution business of Milwaukee-based Roundy's Supermarkets Inc. The Eden Prairie -based food retailer and wholesaler would now serve about 50 independent retailers who have been served in the past by Roundy's distribution centers in Oconomowoc, WI, and Stevens Point, WI. Roundy's did not disclose what it plans to do with those distribution centers.
Supervalu's distribution centers in Green Bay and Pleasant Prairie, WI will serve the 50 grocery retail locations in Wisconsin, but does not include Pick 'n Save locations, including those that are independently owned and operated.
"This transition is consistent with our strategy to concentrate our resources on growing our own retail stores and independently owned and operated Pick 'n Save retailers," says Robert Mariano, chairman and chief executive officer of Roundy's. Aside from Pick 'n Save, Roundy's also operates Copps and Rainbow Foods supermarkets in Minnesota, Wisconsin and Illinois.
Earlier this year, Roundy's sold two distribution centers in Ohio and Indiana, as well as the distribution business, Minneapolis-based Nash Finch Co. Also, Roundy's Inc. recently changed its named to Roundy's Supermarkets Inc. The transition will take place throughout the course of this month. The financial terms of the transaction were not disclosed.
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