Jun 21, 2004 11:21 AM, from staff and wire reports

SuperValu Inc announced that Haggen Inc, one of its distribution customers served by the Tacoma WA facility, will transition its 30 stores to another supplier late in 2004.

Jeff Noddle, SuperValu chairman and chief executive officer, said, “We always regret the loss of a valued customer and will work diligently as we transition this business. As capacity issues still loom in our industry, the challenge is to determine the best economics for both parties and allocate our resources accordingly. Unfortunately, the economics to maintain this account were not satisfactory.”

Loss of business volume is not expected to have a material impact on fiscal 2005 earnings. SuperValu is evaluating the impact of the business loss in the Northwest to determine the appropriate next steps and strategic options.