KeHE to Expand West Coast Distribution Footprint Through Acquisition of DPI
KeHE Distributors has entered into an agreement to acquire DPI Specialty Foods, a West Coast food and beverage distributor, the company announced on Wednesday. Financial terms of the agreement were not disclosed.
DPI will continue to operate independently until the transaction is closed.
Founded in 1953, Illinois-based KeHE distributes fresh, natural, organic and specialty products to more than 30,000 natural food stores, chain and independent grocery stores, e-commerce retailers and other specialty retailers throughout North America.
Through the acquisition, the distributor said it will grow its fresh food portfolio, helping retailers meet consumer demand more quickly. The deal will add over 1,000 DPI customers across all channels as well as additional warehouse space and technology solutions.
“KeHE is dedicated to being a source for good, and this expansion provides an opportunity to deliver enhanced experiences for customers, suppliers, and, ultimately, consumers,” said KeHE president and CEO Deb Conklin, who joined the company earlier this year, in a press release. “This year we’re celebrating seven decades of serving and feeding America, and this acquisition continues to position KeHE as the preferred supply chain partner in North America.”
Ontario, California-based DPI supplies over 40,000 SKUs across both perishable and non-perishable food categories from distribution centers located in Henderson, Colorado; Tualatin, Oregon; and Ontario, California.
“Both DPI and KeHE have built impressive networks, deep industry and category expertise, and value-added services over decades of operation,” said DPI Specialty Foods CEO Russ Blake in the release. “Combining our complementary strategies allows us to further capitalize on those strengths to offer superior value for the U.S. food industry.”
The announcement comes after KeHE in January unveiled its management succession plan, in which former CEO and 15-year company veteran Brandon Barnholdt transitioned to executive chairman of the board, effective as of April 1, with board member Deb Conklin taking over the top leadership role.
Earlier this week, the distribution giant announced a new partnership with Cornerstone Consulting and its brand Cornerstone for Natural, enabling a tech-forward experience for suppliers, retailers and consumers with Smart Shelf Tags. According to a press release, suppliers are able to provide information for the tags that automatically populate for each Universal Product Code (UPC), which may include promotional offers, nutrition and allergen information, testimonials, traceability information, brand stories and videos and images.
“We’re in a new era of consumer access, and we want to empower our suppliers and retailers to deliver what we want – instant information about an item on the shelf,” said senior VP of merchandising Katie Paul in the release. “We’re thrilled to offer this technology to our partners as we work together to innovate the in-store experience.”
