A&P to save $50 million in new deal with C&S

Just six months after citing its agreement with C&S Wholesale Grocers as a significant contributor to its Chapter 11 filing in December, A&P announced that it has entered into a new supply and logistics agreement with the New Hampshire-based supplier. The new contract is expected to take effect once A&P emerges from bankruptcy and will generate savings of up to $50 million per year, according to the grocery company. The agreement is subject to bankruptcy court approval.

In other words, A&P and C&S are on their way to being friends again.

C&S Wholesale keeps growing despite A&P losses

An executive for C&S Wholesale Grocers said yesterday the company is growing through the addition of customers like Ahold (Giant, Stop & Shop), Foodtown and Target. This growth comes despite the fact that bankrupt A&P had accounted for as much as 20% of the company's revenues.

At a conference yesterday, C&S Senior Vice President and Treasurer Tim Ludlow said they have recently added $1 billion in new business with Ahold and may double its current volume with Target this year. They have also added the Foodtown cooperative as a wholesale customer.

Source: Supermarket News