Mar 12, 2008 8:36 AM

The Great Atlantic & Pacific Tea Co. Inc. and C&S Wholesale Grocers Inc. have signed a new 10-year agreement to combine their previously separate A&P and Pathmark supply agreements into one partnership. This agreement restructures the terms of their relationship, aligning distribution operations, procurement practices, and warehousing facility goals throughout A&P’s retail banners.

With this agreement, A&P and C&S will create greater efficiencies across A&P’s distribution network, improve service levels to all stores, and save money.

The new agreement aligns both companies’ objectives and provides incentives to achieve mutual goals. Together, A&P and C&S expect to develop one of the lowest-cost distribution systems in the Northeast grocery industry. Further, they plan to create a world-class distribution system.

Founded in 1859, A&P operates 456 stores in eight states and the District of Columbia. Celebrating its 90th year of operations, C&S is the second-largest food wholesaler and the 10th-largest privately held company in the United States. The company distributes food to supermarkets, retail stores, and military bases across the nation, currently serving more than 5,000 stores from 70-plus locations in 12 states.