July 25, 2011 / 12:12 PM / in 6 years

UPDATE 1-United Natural inks distribution deal with Safeway

* Deal to ditribute organic and natural products

* Says deal to add 4 pct to FY12 rev (Follows alerts)

July 25 (Reuters) - United Natural Foods Inc signed a deal with the second-biggest U.S. supermarket operator Safeway Inc to distribute non-proprietary natural, organic and specialty products to the retailer’s stores in the United States.

United Natural said the additional sales from the three-year contract will boost fiscal 2012 revenue by about 4 percent.

United Natural, which carries and distributes more than 60,000 products to more than 23,000 customer locations throughout the United States and Canada, expects about $1.5-$2.5 million in total start-up expenses related to the deal, effective October. (Reporting by Mihir Dalal in Bangalore; Editing by Joyjeet Das)

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