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Strategies & Market Trends : Value Investing

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To: S. maltophilia who wrote (75678)5/22/2024 1:42:27 PM
From: E_K_S  Read Replies (1) of 78495
 
Do you think it bodes well for an eventual Amazon's purchase of UNFI to extend their 'food & grocery" distribution foot print. They could still get the entire company (w/ a premium) for less than BV.

I guess the argument against an acquisition is why, especially when you have a new distribution agreement. Will need to see if it covers 'ALL' of Amazon's different grocery business (like Amazon Fresh), not just the items that go through Whole Foods. I suspect the former is also covered by this new agreement.

perplexity.ai
The search results do not explicitly state whether the extended distribution agreement between United Natural Foods (UNFI) and Whole Foods Market covers Amazon's entire grocery business or is limited specifically to Whole Foods stores. The language used refers to UNFI being the "primary distributor" for Whole Foods Market until May 2032, replacing the previous agreement set to expire in September 2027. However, there is no mention of the agreement extending to other Amazon grocery operations beyond Whole Foods Market. Based on the information provided, it appears the agreement is focused solely on UNFI's wholesale distribution to Whole Foods Market stores and does not necessarily encompass Amazon's broader grocery business.
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