Behind every well-stocked supermarket shelf of natural and organic products lies a complex supply chain working silently to meet consumer demand. KeHE Distributors, North America's leading wholesale distributor of natural, organic and specialty foods, continues to optimize its supply network with strategic investments. The company recently marked a significant upgrade in a key market with the opening of a new distribution center in Elkton, Florida.
Florida Expansion: Powering Growth
The new 530,000-square-foot facility replaces an older distribution center, offering expanded capacity and advanced technology to enhance KeHE's distribution capabilities. Strategically located adjacent to the previous facility, the new center provides 61% more space with six distinct temperature-controlled zones, including 105,000 square feet of refrigerated and frozen storage plus dedicated areas for ice cream and bulk commodities. The facility also features nearly 30,000 square feet of office space designed for employee productivity.
Florida's growing population of health-conscious consumers and expanding retail presence made it a logical choice for investment. The new facility positions KeHE to better serve this critical market and provide enhanced service to retail partners.
"This warehouse was designed with flexibility and scalability in mind," said Chuck Graefen, KeHE's Vice President of Operations and Supply Chain Management. "Whether handling seasonal peaks, new product introductions, or evolving customer needs, our infrastructure and processes are built to support success—translating directly into better service levels and reliability for our retail and supplier partners."
Operational Excellence: Building a Superior Supply Chain
The Elkton facility represents KeHE's ongoing commitment to supply chain excellence through infrastructure and technology investments. The expanded temperature-controlled zones ensure optimal product quality for perishable items like fresh produce, dairy and frozen foods, while dedicated spaces for specific product categories improve operational efficiency and reduce cross-contamination risks.
Beyond physical upgrades, KeHE has implemented advanced logistics management systems and training programs to maintain high standards of operational efficiency, safety and reliability.
Strategic Network: National Coverage
KeHE operates 19 distribution centers across North America—15 in the United States and 4 in Canada—totaling over 7 million square feet of warehouse space. Five facilities hold LEED certification, reflecting the company's sustainability commitment. This strategically located network serves major retailers including Albertsons, Associated Food Stores, Thrive Market and Fresh Thyme Market through customized solutions developed from long-term partnerships.
Partnership Focus: Sprouts Farmers Market Extension
KeHE's relationship with Sprouts Farmers Market remains particularly noteworthy, with both parties agreeing to a short-term contract extension while negotiating potential long-term agreements. This health-focused grocery chain aligns with KeHE's specialization in natural and organic products, making their collaboration mutually beneficial for meeting consumer demand in this growing market segment.
Future Outlook: Industry Leadership
The Florida expansion represents another step in KeHE's strategy to lead the natural and specialty foods distribution sector. Through continuous improvements in infrastructure, technology and workforce development, the company aims to create greater value for partners and consumers while adapting to market evolution.
KeHE's success stems from its commitment to quality, customer focus and innovation. As market dynamics shift, the company maintains its industry leadership through strategic vision and operational excellence—qualities that will continue driving its contribution to the natural and organic foods industry.