Sobeys Inc. and Target Canada Co. announced they have entered into a long-term wholesale distribution arrangement that will see Sobeys supply Target stores in Canada with select food and grocery products.
Beginning in early 2013, Sobeys will supply Target’s food and grocery requirements for frozen, dairy, and dry grocery products, inclusive of both national brand and Target’s private label brands.
“We are pleased to welcome Target as a valued wholesale customer. The associated increased revenue, and the supply chain efficiencies which will lower our costs, will continue to strengthen our competitive position,” said Bill McEwan, President & CEO, Sobeys Inc.
“Target is excited to be working with a partner like Sobeys. We look forward to building a strong relationship that creates value across both companies for a long time to come,” said Tony Fisher, President, Target Canada.
Through its coast-to-coast network of 23 food distribution centres, Sobeys will be able to provide the same high level of service to Target’s store network as it does to its own network of 1,300 stores across the country. The two companies have also agreed to leverage each other’s distribution networks to mutually reduce transportation expenses.
In addition to the wholesale distribution arrangement, both companies will also explore additional supply chain opportunities.