Source: LOHAS Weekly Newsletter
Published: Monday, December 01, 1997

DAYVILLE, CT—Natural products distributor United Natural Foods (UNFI), following closing its merger with distributor Stow Mills of Chesterfield, NH, announced a reorganization of management along regional areas of business. UNFI shareholders on Oct. 31 approved the issuance of 5 million shares of common stock to acquire Stow Mills in a transaction valued at $107.5 million.

According to Norman Cloutier, United chairman and CEO, Michael Funk, who served as president of UNFI, will now serve as president of the Western division. Richard Youngman, co-founder and former president of Stow Mills, will serve as president of UNFI’s Eastern region and has been nominated to serve on the company’s board of directors. Ted Borek, former CFO and COO of Stow Mills, will oversee the Denver and Chicago operations from the company’s Rainbow Distributing offices in Denver. Dan Atwood will continue as president of UNFI’s retail division. Barclay McFadden, former CEO of Stow Mills, will not be involved in management but will serve on UNFI’s board.

“It is our intention to standardize promotions and pricing within each of the regions. Product mix and promotional schedules need to be decentralized to respond to nuances of the marketplace, and we’ve also noted that our competitors operate in a similar regional manner,” Cloutier says.