Here are two brief analogies for United Natural Foods (UNFI):

1. Sysco for organic and specialty groceries. (UNFI is a large-scale food distributor, similar to Sysco, but with a specific focus on natural, organic, and specialty products for grocery stores and foodservice.)
2. The Amazon Business for natural and organic food retailers. (UNFI serves as a vast, efficient wholesale platform, providing a one-stop-shop for retailers to source a wide array of natural, organic, and specialty food products, much like Amazon Business does for various supplies.)

• Natural, Organic, and Specialty Foods: UNFI distributes a vast array of organic, natural, and specialty food and beverage products to grocery retailers.
• Fresh Produce: The company supplies fresh fruits and vegetables, including organic and conventional options, to its retail partners.
• Supplements and Personal Care Products: UNFI provides wholesale distribution of vitamins, dietary supplements, and natural personal care items.
• Frozen and Refrigerated Goods: The company offers supply chain solutions for temperature-controlled products such as dairy, meats, frozen meals, and desserts.
• Supply Chain and Logistics Services: UNFI provides comprehensive logistics, warehousing, and inventory management solutions for retailers.
• Retail Business Solutions: The company offers value-added services like merchandising support, marketing programs, and private label development to its grocery customers.

Major Customers of United Natural Foods (UNFI)

United Natural Foods (UNFI) primarily sells to other companies (B2B). Its major customers are large retail chains. Based on recent financial disclosures, the following are among its largest customers:

• Whole Foods Market (a subsidiary of Amazon.com, Inc. - NASDAQ: AMZN)
• The Kroger Co. (NYSE: KR)
• Ahold Delhaize (AMS: AD / OTC: ADRNY)

Sandy Douglas, Chief Executive Officer
Sandy Douglas has served as United Natural Foods' Chief Executive Officer and a member of its Board since August 2021. He most recently served as the Chief Executive Officer of Staples, Inc. from April 2018 to June 2021, where he led the company's business-to-business distribution platform. Prior to Staples, Mr. Douglas served as President of Coca-Cola North America until February 2018, leading a $10 billion revenue business encompassing consumer and business-to-business operations. During his 30-year tenure at Coca-Cola, he also served as Global Chief Customer Officer and held various sales and marketing leadership positions. Mr. Douglas began his career at The Procter & Gamble Company in sales and sales management. He has served on the Board of Directors of Wawa Inc. since May 2020.

Giorgio Matteo Tarditi, President and Chief Financial Officer
Giorgio Matteo Tarditi has served as United Natural Foods' President and Chief Financial Officer since April 2024. Before joining UNFI, Mr. Tarditi spent 26 years at GE, where he served as CFO for seven business units, including Renewable Energy and Energy Connections, as well as large divisions within the Power, Oil & Gas, Aerospace, and Healthcare businesses. His experience at GE involved driving operational excellence, efficiency, and productivity through complex transformations and M&A integrations.

Mahrukh Hussain, General Counsel and Corporate Secretary
Mahrukh Hussain has served as United Natural Foods' General Counsel and Corporate Secretary since May 2022. Prior to joining UNFI, Ms. Hussain was Senior Vice President, Chief Commercial and Privacy Officer for McDonald's Corporation starting in January 2022. During her 22 years at McDonald's, she held a variety of legal positions with increasing responsibility, including Interim Global General Counsel and Corporate Secretary, U.S. General Counsel, Europe General Counsel, and Central Division General Counsel. Before McDonald's, she was an Associate at the law firm of Schwartz, Cooper, Greenberger, and Krauss and served as a judicial clerk for Justice Rita Garman.

Mark P. Bushway, President of Natural, Organic, Specialty & Fresh Products and UNFI Chief Supply Chain Officer
Mark P. Bushway was appointed President of Natural, Organic, Specialty & Fresh Products and UNFI Chief Supply Chain Officer in January 2025. He previously served as Chief Supply Chain Officer since December 2021 and as Region President of the Atlantic Region since August 2018. Mr. Bushway's tenure at UNFI also includes roles as Region Vice President of Operations, National Director of Real Estate & Construction, Operations Project Manager, and General Manager of a distribution center.

Louis Martin, President of Conventional Grocery Products and UNFI Chief Commercial Officer
Louis Martin was appointed President of Conventional Grocery Products and UNFI Chief Commercial Officer in January 2025. Prior to this, he served as UNFI's President of Wholesale and Chief Strategy and Transformation Officer. Mr. Martin joined UNFI in March 2022 and has been instrumental in developing the company's strategy and transformation agenda, as well as spearheading the creation and early-stage development of its digital roadmap.

The key risks to United Natural Foods (UNFI) business operations are primarily its significant customer concentration, its substantial debt load, and the increasing threat of cybersecurity incidents.

1. Customer Concentration: United Natural Foods is heavily reliant on a few principal customers, with Whole Foods Market being a notable example. The distribution contract with Whole Foods Market extends until 2032, and any disruption or non-renewal of this agreement would fundamentally alter UNFI's business model. This dependence represents a significant long-term risk and a potential single point of failure for the company.
2. High Debt Load: UNFI carries a considerable amount of debt. While the company's management is actively pursuing strategies to reduce its financial leverage, UNFI is noted for being more aggressive in its use of debt compared to its industry peers. Although net debt was reduced to $1.83 billion by the end of fiscal 2025, which is its lowest level since 2018, this still represents substantial leverage for a wholesale distributor operating on thin margins. A high debt load increases financial risk, particularly in an environment of rising interest rates.
3. Cybersecurity Incidents: The company faces ongoing threats from cybersecurity incidents, which have recently demonstrated their capacity for material impact. A cyber incident in fiscal year 2025 led to temporary operational disruptions and was estimated to reduce full-year net sales by approximately $350 million to $400 million, while also impacting net income by $50 million to $60 million. Such incidents highlight the vulnerability of UNFI's digital supply chain and its reliance on secure information technology systems for efficient operations.

United Natural Foods (UNFI) operates primarily as a wholesale distributor of natural, organic, and specialty foods and non-food products across the United States and Canada. The company's diverse product assortment includes grocery and general merchandise, perishables, frozen foods, wellness and personal care items, bulk and foodservice products, produce, meat, dairy, and organic/non-GMO products. UNFI also offers private label brands and a range of support services to retailers.

The addressable markets for UNFI's main products and services are sizable:

• U.S. Organic Food Market: The U.S. organic food market reached approximately USD 89.0 billion in 2024. This market is projected to grow to USD 95.41 billion in 2025 and is expected to reach about USD 178.38 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2025 to 2034. Another estimate places the U.S. organic food market at around US$ 65.55 billion in 2024, with a projection to reach approximately US$ 159.04 billion by 2033, growing at a CAGR of 10.35% during 2025-2033.
• U.S. Specialty Food Market: The market size for Specialty Food Stores in the U.S. was approximately $32.3 billion in 2025. Separately, the U.S. specialty food ingredients market generated a revenue of USD 12,368.8 million in 2022 and is anticipated to reach USD 18,305.1 million by 2030, with a CAGR of 5% from 2023 to 2030.
• U.S. Foodservice Distribution Market: The U.S. foodservice distribution industry recorded sales of $382 billion in 2022. More broadly, the U.S. food service market (which includes all activities and businesses involved in preparing, serving, and distributing food and beverages) was valued at USD 1,202.65 billion in 2024. It is projected to grow to USD 1,286.65 billion in 2025 and reach USD 2,066.21 billion by 2032, at a CAGR of 7.0% during the forecast period. Total food sales at foodservice outlets in the U.S. were $1.52 trillion in 2024.
• Global Foodservice Distribution Market: The global Foodservice Distribution Market is estimated at USD 1.1 trillion in 2025 and is projected to reach USD 1.9 trillion by 2033, expanding at a CAGR of 7.2%.
• North America Food Service Supply Market: The North America food service supply market was estimated at USD 4,785.0 million in 2024 and is projected to grow at a CAGR of 4.0% from 2025 to 2030, reaching USD 5,946.0 million by 2030.

1. Growth in the Natural and Organic Products Segment: UNFI is well-positioned to capitalize on the sustained consumer demand for healthier, natural, and organic food options, a market segment that has consistently shown strong growth and is projected to continue expanding significantly. The company's natural products business has frequently outperformed its conventional segment.
2. Expansion of Customer Base and Increased Penetration with Existing Customers: A core driver involves expanding UNFI's market share by onboarding new customers and enhancing its offerings to current clients. This includes targeting various retail formats, such as independent stores, conventional supermarkets, and natural product superstores.
3. Operational Efficiency and Network Optimization: Through its "Fuel the Future" strategy, UNFI is investing in supply chain optimization, distribution network consolidation, and the implementation of lean management principles and automation. These efforts are designed to improve efficiency, reduce operational costs, and elevate the overall customer experience, which in turn supports sustainable growth and strengthens UNFI's position as a preferred distributor.
4. Development of Private Brands and Product Innovation: UNFI aims to boost revenue by expanding its portfolio of exclusive private label brands and introducing innovative, health-focused products. This strategy is intended to meet changing consumer preferences, capture higher profit margins, and foster greater customer loyalty.
5. Strategic Partnerships and Enhanced Services: The company is leveraging crucial strategic alliances, such as its extended partnership with Whole Foods Market, to reinforce its market standing and broaden its reach. Furthermore, UNFI is developing new revenue streams by offering services like retail media networks for independent retailers, as well as expanding its e-commerce and professional services capabilities.

Share Repurchases

• In September 2022, United Natural Foods' Board of Directors authorized a new stock repurchase program allowing the company to repurchase up to $200 million of its shares over four years.
• The company repurchased approximately $101.38 million in shares during fiscal year 2023.

Share Issuance

• United Natural Foods' outstanding shares increased from 59.5 million as of August 3, 2024, to 60.6 million as of August 2, 2025, indicating a net issuance of approximately 1.1 million shares during fiscal 2025.

Outbound Investments

• United Natural Foods has not reported any significant outbound investments or acquisitions within the last 3-5 years. The last major acquisition was SUPERVALU in July 2018.

Capital Expenditures

• Capital expenditures for fiscal year 2024 were approximately $370 million, with a planned reduction to around $300 million for fiscal year 2025.
• Projected capital expenditures (including cloud initiatives) for fiscal year 2026 are around $250 million.
• The primary focus of capital expenditures is on modernizing technology, investing in critical foundational infrastructure, and optimizing the distribution network, including automation and Lean daily management initiatives.