Shares of United Natural Foods (UNFI) were rising on Thursday after the food wholesaler said it had extended its distribution tie-up with Amazon's (AMZN) Whole Foods until Sept. 2027, as demand for healthy food at home continues to rise.
The existing contract between the two companies was set to expire in October 2025.
Shares of the Providence, R.I. company were climbing 5.77% to $30.04 at last check during trading.
"This extension allows both companies to maintain focus on what is most important: continuing to meet the growing demand for healthy food at home as we navigate through the global pandemic,” said UNFI Chairman and Chief Executive Steven L. Spinner, in a statement.
"UNFI plays a key role in ensuring Whole Foods Market is able to meet the growing demand for high-quality products across our network of stores and facilities,” said Bart Beilman, senior vice president of supply chain and retail operations at Whole Foods Market.
Shares of Amazon were up 1.22% to $3,041.65 at last check.
Earlier this week, President Joe Biden urged Amazon workers in Alabama to make their own choice when it comes to union preferences.
“Let me be really clear: It’s not up to me to decide whether anyone should join a union. But let me be even more clear: It’s not up to an employer to decide that either,” Biden said in a direct-to-camera video produced by the White House and given first to Bloomberg News on Mar. 1.
“The choice to join a union is up to the workers -- full stop, full stop. There should be no intimidation, no coercion, no threats, no anti-union propaganda,” Biden said in the video.
The financial terms of the deal have not been disclosed. Amazon confirmed the deal to Bloomberg.