Sep 11, 2008 11:16 AM

The Penn Traffic Company has signed a new procurement contract with C&S Wholesale Grocers Inc., building on the services the nation’s second-largest food wholesaler already provides the Syracuse NY-based operator and supplier of more than 210 northeastern United States supermarkets.

C&S has provided procurement services for produce to Penn Traffic since March 2008. The new eight-year C&S contract expands those services to include grocery, deli, seafood, dairy, floral, frozen (mainline), frozen bakery, ice cream, fresh and frozen meat, frozen seafood, ice, and certain other merchandise, beginning in October 2008. The agreement is designed to enable Penn Traffic to focus greater resources on its customers and stores. In addition, Keene NH-based C&S has provided distribution and warehousing services for general merchandise and health and beauty products to Penn Traffic since March 2007.

Outbound logistics and distribution from Penn Traffic’s warehouses to its retail stores and wholesale customers will continue to be handled by the company and its associates. Penn Traffic’s warehouse positions, drivers and other transportation positions, category managers, and other merchandising functions will not be impacted by the new contract.

Approximately a dozen corporate positions will be eliminated as a result of the new agreement. Penn Traffic currently employs more than 7,100 associates.

The new agreement has an effective date of October 12, 2008, and is subject to customary closing conditions.

Related article:

• Penn Traffic, C&S sign produce contract