Jun 7, 2010 10:26 AM

United Natural Foods Inc (NASDAQ:UNFI) announced that the company and Whole Foods Market (NASDAQ:WFMI) have amended their primary distribution agreement to extend the term of the agreement for an additional seven years.

Under terms of the amended agreement, the company will continue to serve as the primary wholesale natural grocery distributor to Whole Foods Market in United States regions where UNFI currently serves as primary distributor. This new agreement amends and extends to September 25, 2020, a seven-year primary distribution agreement not scheduled to expire until Sept 25, 2013.

Steven Spinner, UNFI president and chief executive officer, said, “Extending the term of our Whole Foods Market distribution agreement provides UNFI with a platform to continue to grow our market share in specialty foods and organics, as well as invest in our infrastructure. Over the next three years, we will continue to enhance our national warehouse management systems in order to improve customer service and efficiency. We look forward to capitalizing on the tremendous growth opportunities that exist in the industry as a whole, as well as helping Whole Foods Market, as it implements its strategy for growth.”

Walter Robb, co-CEO of Whole Foods Market, said, “Having a long-term primary distribution partner is an important element of our growth strategy, as it allows us to concentrate our capital and resources over the next decade on growing and improving our store base while focusing our internal distribution efforts around key perishable departments. We continue to seek opportunities to enhance the strategic partnership between UNFI and Whole Foods Market.”

UNFI reported net sales of $3.45 billion for fiscal 2009, ended August 1, 2009. Whole Foods Market accounted for about 33% of UNFI sales in fiscal 2009.

Access www.unfi.com for more information.