FoodLogistics.com |

Elizabeth, NJ: After more than 60 years of selling almost exclusively to its ShopRite members, Wakefern Food Corp. is expanding its wholesale sales to other supermarkets and institutional customers -- both within and beyond its traditional Northeastern market.

Wakefern Chairman Joe Colalillo says new customers will benefit from Wakefern's buying power and expertise in procurement, with the company's full range of brands, products and services available to them.

"The key to ShopRite being the recognized low-price leader is our ability to effectively manage the acquisition cost of our products," Colalillo says. "In essence, our focus on the top line is going to be reflected in our customers' bottom line."

The marketing and distribution arm of ShopRite supermarkets, Wakefern was founded in 1946 as a buying cooperative of eight member grocers in New Jersey. It is now the nation's largest retail cooperative, with 43 members, 200 ShopRites and more than 30 PriceRite stores in Connecticut, Massachusetts, New York, Pennsylvania and Rhode Island.

Colalillo adds that Wakefern's cooperative structure and the independence of its member-owners in operating their ShopRite stores also will enable the company to create wholesale programs that meet customers' specific needs.

"One of the strengths of ShopRite has always been local ownership. Our stores reflect their communities, which at the wholesale level means experience in servicing a diverse mix of product offerings and retail strategies. Our wholesale team is highly skilled at developing store-specific solutions, and that represents a tremendous benefit to our customers," he says. "The same expertise that helped make ShopRite successful is now available to help other grocery companies that are looking to become more successful."

Dave Baer, who last fall became director of wholesale sales and is leading the growth initiative, says Wakefern recently began selling more than 300 ShopRite-brand grocery and non-food items to Heinen's Fine Foods, a 17-store chain based in Ohio. Previously, the brand was available only at ShopRites in New York, New Jersey, Delaware, Connecticut and Pennsylvania, and in a few other supermarkets overseas.

"Our relationship with Heinen's is really a win-win because they're now able to offer their customers a full range of high quality, value-priced products that are unique in their markets," says Baer. "From our perspective, it's an introduction of the ShopRite name to the Midwest, which we believe can only contribute to the growth of our brand."