KeHe opened a distribution center in Elkton, Florida, last week, replacing a former facility with a larger one.
The 530,000-square-foot facility will help the company scale its distribution of natural, organic and specialty grocery products, the company said in an emailed announcement.
The new facility is close to a former KeHe distribution center. The newly opened site has 61% more space than the previous one and includes six temperature zones, 105,000 square feet of cooler and freezer space, and dedicated rooms for ice cream and bulk items. The facility also includes a nearly 30,000-square-foot office.
With so many grocers expanding in Florida, the new facility allows KeHe to meet growing demand in a key market.
“This warehouse has been designed with flexibility and scale in mind,” Chuck Graefen, vice president of operations and supply chain management at KeHe, said in a statement. “Whether it’s meeting seasonal surges, onboarding new products, or adapting to shifting customer demands, infrastructure and processes were built to support success, all of which translates directly into better service levels and reliability for our retail and supplier partners.”
KeHe distributes natural and organic, specialty, and fresh products to more than 31,000 natural food stores, chains and independent grocery stores in North America, including Albertsons, Associated Food Stores, Thrive Market and Fresh Thyme Market.
KeHe has 19 distribution centers in North America — four in Canada and 15 in the United States — that collectively cover more than 7 million square feet of warehouse space, according to the company’s website. Five of its distribution centers are LEED certified.
The opening comes at the same time that KeHe and Sprouts Farmers Market are determining their next long-term agreement. The companies agreed on a short-term extension of their current contract, which was set to expire this month, according to a regulatory filing.
