United Natural Extends Whole Foods Deal

The company also affirms its financial guidance.
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United Natural Foods (UNFI) - Get Report signed a new seven-year distribution agreement with Whole Foods Market (WFMI) and reiterated its financial guidance.

The new agreement runs until Sept. 29, 2013. United Natural will continue to serve as the primary wholesale natural grocery distributor to Whole Foods Market in the U.S. regions where it's already the main distributor. The new pact replaces a contract that was set to expire Dec. 31, 2007.

At the same time, United Natural affirmed its fiscal 2007 forecast, saying revenue should increase around 11% to 15% year over year to a range of $2.7 billion to $2.8 billion. Earnings should be $1.25 to $1.30 a share, up 15% to 19%.

United Natural reported net sales for fiscal 2006 of $2.43 billion. Whole Foods accounted for roughly 26% of United Natural's sales in the last fiscal year.

Shares of United Natural rose 4.5% to $32.39 in premarket trading Monday.