What changed in this filing

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Item 1. Business

2026-09-14 compared with 2025-10-01 · 135 added, 139 removed, 154 unchanged (64% of the section changed)

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Our Background

UNFI is a leading distributor of grocery and non-food products, and support services provider to retailers in the United States and Canada.

We believe we are uniquely positioned to provide the broadest array of products, programs and services to customers throughout North America.

Our diversified customer base includes over 30,000 customer locations ranging from some of the largest grocers in the country to smaller retailers.

We offer approximately 230,000 products consisting of national, regional and private label brands grouped into the following main product categories:

grocery and general merchandise;

frozen foods;

wellness and personal care items;

and bulk and foodservice products.

UNFI is a leading grocery wholesaler and support services provider to retailers in the United States and Canada.

We believe our broad array of products, data, insights, programs and services uniquely positions us to help meet a wide range of customer and supplier needs across North America.

Our diversified customer base includes over 30,000 customer locations ranging from some of the largest grocers in North America to smaller retailers.

We offer over 200,000 products consisting of national, regional and private label brands grouped into the following main product categories:

center store and general merchandise;

fresh and perishables;

wellness and personal care;

and bulk and foodservice.

We believe we are North America’s premier grocery wholesaler with 46 distribution centers and warehouses representing approximately 26 million square feet of warehouse space.

We are a coast-to-coast distributor with customers in all 50 states as well as all ten provinces in Canada, making us a desirable partner for retailers and consumer product manufacturers.

We believe our total product assortment and service offerings are unmatched by our wholesale competitors.

We plan to continue to pursue new business opportunities with independent retailers that operate diverse formats, regional and national chains, as well as international customers with wide-ranging needs.

We believe our total product assortment and service offerings help differentiate UNFI in the wholesale marketplace.

We plan to continue to pursue new business opportunities with independent retailers that operate diverse formats, regional and national chains and international customers with wide-ranging needs.

Our business is classified into three reportable segments:

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Our Strategic Priorities

Our value creation strategy is focused on adding value for our customers and suppliers and becoming a more effective and efficient company.

We are actively working to position our Company to be the partner of choice to a resilient portion of the food retail industry, including retailers focused on natural, organic, specialty, multi-cultural and differentiated grocery offerings.

This strategy capitalizes on UNFI’s strengths, including our heritage in natural, organic and specialty products, growing portfolio of digital and professional services and private label offerings that help customers differentiate and compete.

We expect to continue to use available capital to re-invest in our business and are committed to improving our free cash flow and financial leverage through working to improve our profitability, disciplined capital investment and strengthened working capital management, while reducing outstanding debt.

We believe we can optimize our performance and profitability through our improvement efforts, which we expect will improve our operational effectiveness and cost structure, increase sales of products and services to new and existing customers and position us to provide tailored, data-driven solutions to help our customers and suppliers run their businesses more efficiently.

We are continually striving to better serve our stakeholders, including our customers, suppliers, associates and communities, and to drive profitable growth and sustainable shareholder value creation.

We completed the first fiscal year of the strategy we introduced in October 2024 designed to add value to our customers and suppliers while making the Company more effective and efficient, improving profitability and free cash flow generation and reducing net leverage.

Our strategy is centered on adding value to our customers and suppliers through our expansive assortment of products, programs, insights and services that help them grow and compete.

Our strategy is highly focused on actively positioning our Company to add value to a resilient portion of the food retail industry estimated at over $90 billion, which includes many natural, organic, specialty, multi-cultural and differentiated conventional grocery retailers.

This refreshed strategy capitalizes on UNFI’s strengths, including our heritage in natural and organic products, our growing, value-added digital and professional services portfolio and our private label Brands+ program.

Simultaneously, we are working to improve free cash flow generation and reduce net leverage by optimizing controllable variables, including through intensified network optimization, reduced capital intensity and optimized cost structure.

Our efforts to optimize our distribution network include streamlining our distribution center footprint to create a more responsive and resilient supply chain with a lower level of fixed capital invested.

As part of this, we implemented Lean daily management in 28 of our distribution centers in fiscal 2025 to further enhance effectiveness and efficiency, including measuring our success around four key performance metrics – safety, quality, delivery and cost.

Additionally, we are prioritizing capital investment needs and reducing the overall level of spending, while continuing to emphasize maintenance and targeted network enablement and technology enhancements.

We are also strengthening our working capital management processes as a part of our plan to improve working capital efficiency while driving higher customer satisfaction.

Finally, we continue to reduce ongoing operating expenses and better align corporate resources to reflect our updated strategy and customer and supplier-facing work.

In the second quarter of fiscal 2025, we began realigning our commercial wholesale organization into two product-centered business divisions, Conventional Grocery Products (“Conventional”) and Natural, Organic, Specialty & Fresh Products (“Natural”), to enhance service to customers and suppliers through more customized, product- and service-focused commercial teams.

Each division has focused sales teams aligned to the unique product and service needs of their customers and are supported by dedicated functional experts in merchandising, operations, procurement and supplier services.

In addition, capability centers of excellence in areas such as supply chain, professional and digital services, and private brands work across the divisions to help create customized programs to help customers and suppliers accelerate their growth strategies.

In the fourth quarter of fiscal 2025, we restructured our internal financial reporting and management processes to align with the new divisional structure.

As a result, we realigned our operating and reportable segments based on how the Chief Operating Decision Maker (“CODM”) manages the business, makes decisions about the allocation of resources and assesses segment performance.

This new external reporting structure provides insight into each division’s performance in line with how the business is now managed.

Prior periods have been recast to conform to the new operating and reportable segments.

Refer to Note 16—Business Segments in Part II, Item 8 of this Annual Report for additional information.

We expect to continue to use available capital to re-invest in our business and are committed to improving our free cash flow and financial leverage while reducing outstanding debt.

We believe we can optimize our performance and profitability through our improvement efforts, which we expect will improve our cost structure, increase sales of products and services, and position us to provide tailored, data-driven solutions to help our customers run their businesses more efficiently and expand our customer base.

Our Commitment to Sustainability

Creating a Better Future for Communities

At UNFI, we are committed to delivering value to our shareholders while also fostering long-term sustainability in every aspect of our business.

Now in its fifth year, our sustainability strategy, Better for All, is designed to drive meaningful impact outcomes, while simultaneously supporting business efficiencies and creating shared value for our stakeholders.

In January 2025, we published our 14th annual Impact Report, which offers a summary of our sustainability initiatives and impact during fiscal 2024.

The report demonstrates our enhanced focus on our six most pressing impact areas:

safety, inclusion and well-being, waste, climate, sourcing and community.

At UNFI, we are committed to delivering value to our shareholders while also fostering long-term sustainability throughout our business.

Now in its sixth year, our sustainability strategy, Better for All, is designed to drive meaningful impact outcomes, while simultaneously supporting business efficiencies and creating shared value for our stakeholders.

In November 2025, we published our 15th annual Impact Report, which offers a summary of our sustainability initiatives and impact during fiscal 2025.

The report demonstrates our focus on our four streamlined impact pillars:

resilient supply chain, thriving associates, efficient and sustainable operations and nourished communities.

The report is available on the Investor Relations section of our website and highlights progress toward our goals, including waste reduction, associate engagement and belonging, food donations and food safety.

The contents of our Impact Report are not incorporated by reference into or considered to be part of this Annual Report.

In fiscal 2026, we also updated our Sustainability Policy, outlining our commitments to advancing UNFI’s initiatives that have positive impacts on the planet, deliver value for our stakeholders and drive efficiency and cost savings for the Company.

Our impact begins with the decisions made by our partners and suppliers, well before products reach our distribution centers.

We are investing in programs and partnerships that drive product quality and improve supply chain resilience.

In fiscal 2023, we launched the UNFI Climate Action Partnership, encouraging suppliers to set credible climate goals.

By the end of fiscal 2024, 69 UNFI suppliers had joined.

In fiscal 2025, we hosted UNFI’s first in-person Climate Summit with over 80 attendees, including 34 UNFI Climate Action Partnership suppliers, to discuss the business and environmental value of working collectively to reduce shared Scope 3 emissions.

UNFI’s Climate Action Hub, which offers suppliers a variety of tools and resources to innovate and scale climate solutions across the food system, hosted its second webinar series featuring industry leaders and exploring climate action topics.

We made significant progress on our goal to promote soil health on one million acres by 2030 through UNFI Foundation grants and impact investments, and better quantifying the impact of procuring certified organic products.

We also made progress on our Deforestation Policy, transitioning more than 100 of our owned brand SKUs to Roundtable on Sustainable Palm Oil (“RSPO”)-certified palm oil.

Aligned with our Animal Welfare Position Statement, we enhanced our tracking of products sold in accordance with higher welfare standards.

We believe these policies help us to work more efficiently and effectively with suppliers and vendors in pursuing our shared goals.

We remain focused on improving operational resilience, supporting the highest level of safety and cultivating a high-performing workforce.

Because of this, we are investing in programs and partnerships that drive product quality and seek to improve supply chain resilience.

In fiscal 2023, we formed the UNFI Climate Action Partnership (“CAP”), which provides resources and support to help suppliers measure, manage and minimize their climate impact.

In fiscal 2026, over 100 UNFI suppliers participated in CAP.

In fiscal 2026, we hosted two climate summits, bringing together CAP suppliers, retailers and partners to foster industry collaboration and work to accelerate collective action to reduce shared Scope 3 greenhouse gas emissions.

UNFI’s Climate Action Hub, an online resource that offers suppliers tools and resources to innovate and scale climate solutions across the food system, published three new supplier case studies showcasing real world climate action and associated business benefits.

We believe these practices and resources help us to work more effectively and efficiently with suppliers and vendors in pursuing our shared goals.

We remain focused on supporting the highest level of safety, cultivating a high-performing workforce and improving operational resilience.

Our associates’ safety and well-being are of the utmost importance to us.

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Through continuous efforts, we are dedicated to minimizing the risk of injuries and accidents, providing a safe and thriving environment for everyone.

For the fourth year in a row, we received a score of 100 on the Disability Equality Index.

Our seven associate-led Belonging and Innovation Groups also continued to cultivate a culture of innovation, learning and impact across the Company.

We continue to invest in projects that reduce operational cost while generating return on investment.

In fiscal 2025, we completed construction on our roof-mounted solar array installation at our Riverside, California distribution center, our largest to date.

We continued work on our energy efficiency tune ups across our distribution center network, completing seven in fiscal 2025, resulting in both financial and energy savings.

We are also focused on a culture of inclusion, with our seven associate-led Belonging and Innovation Groups, which are open to all associates, providing opportunities for innovation, learning and impact across the Company.

For the fifth year in a row, we were awarded the Distinguished proficiency level by Disability Index, the highest award, reserved for companies with industry-leading disability inclusion with deeply embedded and innovative practices.

We continue to invest in projects that reduce operating costs by improving energy efficiency, lowering fuel spend and enhancing long-term infrastructure resilience.

As part of these efforts, we continued to expand our energy efficiency initiatives to additional distribution centers and, in fiscal 2026, broke ground on an integrated energy infrastructure project at our Gilroy, California, distribution center.

The project will equip the site with infrastructure to support electric vehicle tractors, including charging stations, solar power and battery energy storage.

Together, these upgrades are expected to help reduce transportation costs and emissions while strengthening our ability to serve our customers.

We aim to be responsible community members, from our waste and recycling initiatives to the local organizations our associates support through paid time off to volunteer.

In fiscal 2025, we improved implementation of our Reverse Logistics Disposition Reporting (“RLDR”) system at all UNFI distribution centers to enhance inventory visibility and operational efficiency.

Through RLDR we are helping reduce food waste and decrease shrink in the distribution centers, resulting in overall cost savings to the Company.

The UNFI Foundation, a 501(c)(3) organization, continued to align its strategy with business and impact objectives by implementing new grantmaking programs and supporting inclusive procurement and regenerative agriculture efforts.

In fiscal 2025, the UNFI Foundation awarded nearly $1.8 million in grants to nonprofits aligned with its funding priorities.

Our stakeholder-focused sustainability strategy has long been a part of UNFI’s success, unlocking efficiencies through collaboration across the business, and is key to our Company purpose:

In fiscal 2026, we launched our Zero Waste Champions Network, a Company-wide initiative across our distribution centers to improve waste diversion rates and support our waste reduction goals.

Through partnerships with community organizations and our distribution center teams, we achieved our goal of donating 250 million pounds of food to communities in need this year, four years ahead of schedule.

The UNFI Foundation, a 501(c)(3) organization, continued to align its strategy with business and impact objectives by issuing impact investments and celebrating UNFI’s 50th anniversary through a “50 for 50 grantmaking campaign,” which funded organizations in all 50 states and Canada.

As part of this campaign, the UNFI Foundation is committed to awarding nearly $2 million to nonprofits aligned with its funding priorities in calendar year 2026.

We believe our stakeholder-focused sustainability strategy has long been a part of UNFI’s success, unlocking efficiencies through collaboration across the business, and is key to our Company purpose:

Better Future.

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We maintain long-standing relationships with many of our customers.

Our diversified customer base includes over 30,000 customer locations, primarily located across the United States and Canada, which range from large grocery chains to smaller retailers.

Our diversified customer base includes over 30,000 customer locations, primarily located across the United States and Canada, which range from some of the largest grocers in North America to smaller retailers.

One Natural customer, which includes customers under common control, constituted more than 10% of total Net sales in fiscal 2026.

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dollars and shipped internationally, which is an even smaller component of our business.

We also continue to invest in technology and systems with the intent of improving the efficiency of our operations, enhancing the customer experience and growing our services platform, including our eCommerce and innovation businesses.

We also continue to invest in technology and systems with the intent of enhancing the customer experience, improving the effectiveness and efficiency of our operations and growing our services platform, including our eCommerce and innovation businesses.

This includes sales to eCommerce companies as well as business-to-business sales to non-traditional customers.

Marketplace by UNFI is our business-to-business digital eCommerce solution for emerging brands looking to expand distribution with UNFI customers.

Through this virtual marketplace, suppliers gain expedited access to UNFI’s digital infrastructure to promote and sell their products to UNFI’s broad customer base while UNFI customers gain access to an even broader assortment of unique and local items with flexible order sizes and the convenience of ordering from multiple sources online in one place.

In fiscal 2026, we launched a new digital marketplace called Endless Aisle that provides retailers with access to innovative, emerging brands while helping suppliers expand their reach.

Through this digital marketplace, suppliers gain expedited access to UNFI’s digital infrastructure to promote and sell their products to UNFI’s broad customer base, while UNFI customers gain access to an even broader assortment of unique and local items with the convenience of ordering from multiple sources online in one place.

Natural and Conventional Wholesale

We organize and operate our wholesale business through two operating segments which represent our product-centered business divisions, as follows:

• Natural , which primarily reflects the wholesale distribution of natural, organic and specialty grocery and non-food products and services and includes the Company’s portfolio of natural owned brands and natural and organic snack food manufacturing business;

• Conventional , which primarily reflects the wholesale distribution of conventional grocery and non-food products and services and includes the Company’s portfolio of conventional owned brands.

Each of these segments is led by a separate president responsible for product and service strategy, execution, and financial results, and has focused regional sales teams aligned to the unique product and service needs of the customers they serve.

Product and service categories include grocery, fresh, private brands, wellness and personal care items, eCommerce and foodservice, as described further below.

We have established a national network of strategically located distribution centers utilizing a multi-tiered logistics system.

The network includes facilities that carry slow turn or fast turn groceries, perishables, general merchandise and home, health and beauty care products.

For financial reporting purposes, intersegment sales from our distribution centers to our own Retail stores are eliminated from our Conventional segment.

We offer wholesale customers a wide variety of food and non-food products, and our own lines of private label products.

We also offer a broad array of digital and professional services.

As a logistics provider, efficiency is an important customer service measure.

We are in the process of optimizing our facilities to implement leading warehouse technology, ranging from radio-frequency devices guiding selectors to mechanized facilities with completely automated order selection for dry groceries that help us deliver aisle-ready pallets to wholesale customers.

Deployment of continuous improvement methodologies within our supply chain is focused on delivering labor and cost efficiencies while also improving our ability to more effectively service our customers.

• Natural , which primarily reflects the wholesale distribution of natural, organic and specialty food and non-food products and services and includes the Company’s portfolio of natural owned brands and natural and organic snack food manufacturing business;

• Conventional , which primarily reflects the wholesale distribution of conventional food and non-food products and services and includes the Company’s portfolio of conventional owned brands.

Segment management is responsible for product and service strategy, execution, and financial results, and has focused regional sales teams aligned to the unique product and service needs of the customers they serve.

We offer wholesale customers a wide variety of food and non-food products, including our own private label offerings, as well as a broad array of digital and professional services.

Our product assortment spans natural, organic, specialty and conventional categories and is designed to meet the diverse needs of our customers.

To maintain our market position and improve our operating efficiencies, we seek to continually:

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• consolidate systems applications among physical locations and regions;

• invest in our people, facilities, equipment and technology.

• invest in our people, facilities, equipment and supply chain technology.

We maintain contracts with suppliers to procure their products.

Our procurement process includes assessments of demand planning, pricing, seasonality and other factors.

Inventory costs are determined when products are procured and include vendor funds received and inbound freight, among other items.

The gross margins we earn on sales to our customers are typically based on a percentage mark-up, or fee, on top of vendor listed base cost, which vary by customer, product type, vendor size, volume throughput, transportation methods and distances, among other factors.

Inventory costs are determined at the time of procurement and include vendor funds received and inbound freight, among other items.

The gross margins we earn on sales to our customers are typically based on a percentage mark-up, or fee, on top of vendor listed base cost, and vary by customer, product type, vendor size, volume throughput, transportation methods and distances, among other factors.

Net sales to customers are determined at the time of sale based on the then prevailing vendor listed base cost and include discounts we offer to our customers.

The differential between the procured cost, including vendor funds and inbound freight, as compared to the net sales price of these products, primarily generates our gross margin.

The differential between the cost at which we procure products, as compared to the net sales price at which those products are sold, primarily generates our gross margin.

As of August 1, 2026, our Retail segment included 65 Cub Foods and Shoppers retail grocery stores.

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We believe our retail banners have strong local and regional brand recognition in the markets in which they operate.

Our Retail operations are principally supplied by six of our Conventional distribution centers.

Our Retail operations are principally supplied by three of our Conventional distribution centers.

For financial reporting purposes, intersegment sales from our distribution centers to our own Retail stores are eliminated from our Conventional segment.

Our Product Offerings

Our extensive selection of products includes natural, organic, specialty, produce and conventional grocery and non-food products.

We offer nationally recognized brand name and private label products, including grocery (both perishable and nonperishable), general merchandise, home, health and beauty care and pharmacy, which are sold through our Natural and Conventional segments to wholesale customers and our Retail stores.

We offer the following main product categories:

grocery and general merchandise;

frozen foods;

wellness and personal care items;

and bulk and foodservice products.

Our extensive selection includes food and non-food products spanning the following main product categories:

center store and general merchandise;

fresh and perishables;

wellness and personal care;

and bulk and food service.

Across these categories, our assortment includes natural, organic, specialty, and conventional products.

We offer nationally recognized brand name and private label products, which are sold through our Natural and Conventional segments to wholesale customers and our Retail stores.

Our owned brands portfolio is a collection of brands that offer high quality solutions for private label to our customers.

ESSENTIAL EVERYDAY® is our leading national brand equivalent private label solution with nearly 2,000 SKUs for departments across the store.

ESSENTIAL EVERYDAY® is our leading national brand equivalent private label solution with over 2,000 SKUs for departments across the store.

It is complemented by SHOPPERS VALUE®, which offers the budget conscious consumer quality alternatives to national brands.

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Our Field Day® brand is primarily sold to natural store / co-op retailers as a private label solution.

Our WOODSTOCK® brand has been pioneering organic / non-GMO products for over 35 years and continues to launch innovative products.

Our category-specific brands, primarily including STONE RIDGE CREAMERY®, EQUALINE®, and CULINARY CIRCLE®, also provide national brand equivalent products at a competitive price.

Our WOODSTOCK® brand has been pioneering organic / non-GMO premium products for over 40 years and continues to launch innovative products.

Our complementary brands, primarily including STONE RIDGE CREAMERY®, EQUALINE®, CULINARY CIRCLE®, SUPER CHILL®, ARCTIC SHORES SEAFOOD COMPANY® and KOYO® also provide national brand equivalent products at a competitive price.

Our subsidiary doing business as Woodstock Farms Manufacturing specializes in importing, roasting, packaging and distributing nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items and confections for our customers and in the Company’s branded products.

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Our Suppliers

We purchase our products from nearly 10,000 suppliers.

We purchase our products from a broad network of thousands of suppliers.

The majority of our suppliers are based in the United States and Canada, but we also source products from suppliers throughout the world.

We believe suppliers seek to distribute their products through us because we provide access to a large customer base across the United States and Canada, distribute the majority of the suppliers’ products and offer a wide variety of marketing programs to our customers to help sell our suppliers’ products.

We believe suppliers seek to distribute their products through us because we provide access to a large, diversified customer base across the United States and Canada, distribute the majority of the suppliers’ products and offer a wide variety of marketing programs to our customers to help sell our suppliers’ products.

Substantially all product categories that we distribute are available from a number of suppliers and, therefore, we are not dependent on any single supply source for any product category.

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Our Distribution Network

Our distribution centers are located to provide direct access to the markets we serve, and we configure them to optimize service and operating costs.

The configuration of our distribution network allows us to provide breadth of assortment, competitive service levels and cost efficiency.

We believe that we incur lower inbound freight expense than our regional competitors because our scale allows us to buy full and partial truckloads of products.

Our wholesale operations are supported by a strategically designed distribution network that enables us to efficiently source, store and deliver products to our customers.

Our distribution centers are located to provide direct access to the markets we serve and are configured to optimize service levels and operating costs.

These facilities support our broad range of product categories as described above.

Products are delivered to our distribution centers primarily by our fleet of leased and owned trucks, contract carriers and the suppliers themselves.

When financially advantageous, we pick up products from suppliers or satellite staging facilities and return them to our distribution centers using our own trucks.

Additionally, the scale of our distribution network provides us with the flexibility to shift volume amongst distribution centers in the case of volume spikes, unique customer needs, temporary inbound fill rate challenges and weather-related events as well as the capacity to support future sales growth.

We believe that we incur lower inbound freight expense than our regional competitors because our scale allows us to buy full and partial truckloads of products.

Additionally, the scale of our distribution network provides us with the flexibility to shift volume amongst distribution centers in response to volume spikes, unique customer needs, temporary inbound fill rate challenges and external factors such as weather-related events, as well as the capacity to support future sales growth.

We deliver products to customers using a combination of company-operated and third-party transportation.

The majority of our trucks are leased and are maintained by third-party national leasing companies, which in some cases maintain facilities on our premises for the maintenance and service of these vehicles.

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Organic Certification

We have 33 distribution centers in the United States that are “National Organic Program certified as Organic Handlers by QAI”.

Our California locations are certified as Organic Handlers by QAI, with one location also being certified by California Organic Farmers.

We are registered as Organic Handlers with the State of California Department of Public Health Food and Drug Branch and the California Department of Food and Agriculture.

In addition, our Canadian distribution centers in British Columbia and Ontario hold an Organic Distributor certification from QAI.

Across our United States distribution center network, QAI has issued 33 Organic Handler certifications under the USDA National Organic Program.

In California, all distribution centers are registered as Organic Handlers with both the State of California Department of Public Health, Food and Drug Branch, and the California Department of Food and Agriculture.

Additionally, one California facility holds organic certification from California Certified Organic Farmers.

Our distribution center in Ontario, Canada, is also certified by QAI as an Organic Distributor.

We maintain a comprehensive quality assurance program.

All products we sell that are represented as organic are required to be certified as such by an independent third-party agency.

We maintain current certification affidavits on most organic commodities and produce in order to verify the authenticity of the product.

Most potential suppliers of organic products are required to provide such third-party certifications to us before they are approved as suppliers.

All products we sell that are represented as organic must be certified by an independent third-party agency.

We maintain current certification affidavits for most organic commodities and produce to verify product authenticity.

Potential suppliers of organic products are required to provide valid third-party certifications before they are approved as suppliers.

Our Technology Investments

We continue to make significant investments in supply chain, financial, information and business applications and operating systems.

We continually evaluate and upgrade our enterprise systems and supply chain infrastructure to enhance security, efficiency, cost-effectiveness and responsiveness to customer needs.

We believe these systems include best in class functionality in order management systems, cloud-based warehouse management systems for inventory control and labor management, scan-based fulfillment applications, transportation management systems and warehouse automation and robotics.

We continually evaluate and upgrade our enterprise systems and supply chain infrastructure to enhance security, respond to industry needs, enable our customers effectively and drive cost-efficiency.

We believe these systems include best in class functionality in order management systems, procurement systems for demand forecasting and inventory replenishment, cloud-based warehouse management systems for inventory control and labor management, scan-based fulfillment applications, transportation management systems and warehouse automation and robotics.

We continue to deploy our fulfillment technology with Universal Product Code (“UPC”) scan-based technology for selection, loading and customer deliveries to ensure order accuracy and traceability throughout the supply chain.

We have expanded our portfolio of investments in AI-enabled warehouse automation and robotic solutions to support full case and unit pick fulfillment processes.

These investments are intended to unlock our supply chain capabilities, improve customer experience and enable growth.

We continue to leverage effective transportation management systems that enable us to lower inbound transportation costs by making optimum use of our own fleet of trucks and/or by consolidating deliveries to achieve full truckloads.

We have expanded our portfolio of investments in artificial intelligence (“AI”)-enabled warehouse automation and robotic solutions to support full case and unit pick fulfillment processes to improve safety, quality, service and deliver supply chain efficiencies.

We continue to leverage effective transportation management systems that enable us to lower inbound transportation costs by making optimal use of our own fleet of trucks and/or by consolidating deliveries to achieve full truckloads.

In addition, we use cloud solutions to assist us in developing the most efficient routes, tracking vehicle maintenance and monitoring driver safety and the movement of trucks in real-time.

We continue an effort to standardize to best in industry software solutions for inventory procurement, order management, transportation operations and warehouse management systems throughout our network.

Our investment in technology is intended to improve our supply chain effectiveness for our suppliers, associates and customers enabling our collective success.

We continue our efforts to standardize to industry-leading software solutions for inventory procurement, order management, transportation operations and warehouse management systems throughout our network.

Deployment of continuous improvement methodologies within our supply chain is focused on improving our ability to more effectively service our customers and suppliers and enable growth, while also delivering labor and cost efficiencies.

Our Natural, Conventional and Retail businesses operate in a highly competitive and rapidly evolving industry, which is characterized by low profit margins, new business models and the entry of new, non-traditional competitors that intensify competition.

Our food distribution business competes with many traditional and specialty grocery wholesalers and retailers that maintain or develop self-distribution systems for the business of independent grocery retailers.

We also increasingly compete with retailers that maintain or develop self-distribution systems, as well as companies that offer services in digital advertising, fulfillment and delivery services, health and wellness and financial services.

We also increasingly compete with companies that offer services in digital advertising, fulfillment and delivery services, health and wellness and financial services.

The primary competitive factors in the wholesale business include price, service level, product quality, variety, availability, location of distribution centers and other value-added services.

In recent years, consolidation within the grocery industry has resulted in, and is expected to continue to result in, increased competition, including from some competitors that have greater financial, marketing and other resources than we do.

Ongoing consolidation within the grocery industry has increased, and may continue to increase, competitive pressure from large, well-capitalized competitors with significant scale, purchasing power and financial, marketing, technological and operational resources.

Independent retailers and smaller chain customers represent a significant portion of our business and face intense competition from national grocery chains, supercenters, deep discounters, mass merchandisers, limited assortment stores and eCommerce providers, many of whom offer expansive services beyond grocery.

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Government Regulation

Our operations and many of the products that we distribute in the United States are subject to regulation by state and local health departments, the USDA and the United States Food and Drug Administration (the “FDA”), which generally impose standards for product quality, safety, labeling and defense.

Our operations and many of the products that we distribute in the United States are subject to regulation by state and local regulatory agencies (including, but not limited to, health departments and the USDA).

The United States Food and Drug Administration (the “FDA”) imposes standards for product quality, safety, labeling and food defense.

In the United States, our facilities generally are inspected at least annually by state or federal authorities.

For certain product lines, we are also subject to the Federal Meat Inspection Act, the Poultry Products Inspection Act, the Perishable Agricultural Commodities Act, the Packers and Stockyard Act and regulations promulgated by the USDA to interpret and implement these statutory provisions.

For meat-based and produce product lines, we are also subject to the Federal Meat Inspection Act, the Poultry Products Inspection Act, the Perishable Agricultural Commodities Act, the Packers and Stockyard Act and regulations promulgated by the USDA to interpret and implement these statutory provisions.

The USDA imposes standards for product safety, quality and sanitation through the federal meat and poultry inspection program.

The FDA Food Safety Modernization Act in the United States (administered by the FDA) and the Safe Foods for Canadians Act in Canada (administered by the Canadian Food Inspection Agency (“CFIA”)) have expanded food safety requirements across the food supply chain and, among other things, impose additional regulations focused on prevention of food contamination, more frequent inspection of high-risk facilities, increased record-keeping, and improved tracing of food.

Products that do not meet regulatory standards and/or comply with these regulations may be considered to be adulterated and/or misbranded and subject to recall.

The FDA Food Safety Modernization Act (“FSMA”) in the United States (administered by the FDA) and the Safe Foods for Canadians Act in Canada (administered by the Canadian Food Inspection Agency) have expanded food safety requirements across the food supply chain and, among other things, impose additional regulations focused on prevention of food contamination, more frequent inspection of high-risk facilities, increased record-keeping and improved tracing of food.

Products that do not meet regulatory standards and/or comply with these regulations may be considered adulterated and/or misbranded and subject to recall.

The FSMA rule on Sanitary Transportation of Human and Animal Food establishes requirements intended to prevent practices during transportation that create food safety risks, such as inadequate temperature control, cross-contamination and unsanitary transportation equipment.

The Surface Transportation Board and the Federal Highway Administration regulate our transportation operations in the United States.

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Department of Labor and similar regulations by state agencies.

Our facilities in Canada are subject to regulations issued pursuant to the Canadian Centre for Occupational Health and Safety and similar regulations by various provincial agencies.

Our facilities in Canada are subject to regulations issued pursuant to the occupational health and safety frameworks implemented by various provincial agencies.

These regulations require us to comply with certain health and safety standards to protect our employees from recognized hazards.

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Human Capital Management

Our employees are critical to supporting our values and achieving our strategic vision, and we are striving to be an employer of choice.

We are focused on associate engagement, empowerment and safety to foster innovation and bring best-in-class solutions to our customers and suppliers in an ever-changing retail landscape, including new ways of work scheduling and productivity investments.

The Compensation Committee of our Board of Directors has oversight of human capital management matters with a focus on associate well-being across a variety of measures.

As of August 2, 2025, we had approximately 25,600 full and part-time employees, 10,768 of whom (approximately 42%) are covered by 57 collective bargaining agreements, including existing agreements under negotiation.

Our employees, referred to as “associates,” are critical to supporting our values and achieving our strategic vision.

We believe a people-first culture, combined with investments in talent, leadership and organizational capabilities, strengthens our ability to serve customers and suppliers.

We strive to be an employer of choice by focusing on associate safety, empowerment and engagement to foster innovation and deliver differentiated solutions to our customers and suppliers in an ever-changing retail landscape.

The Compensation Committee of our Board of Directors oversees human capital management matters with a focus on associate well-being across a variety of measures.

As of August 1, 2026, we had 23,431 full and part-time employees, 11,341 of whom (approximately 48%) were covered by 64 collective bargaining agreements, including existing agreements under negotiation.

We have been the focus of union-organizing efforts, and we believe it is likely that similar efforts will continue in the future.

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To reduce turnover, we have an emphasized focus on and commitment to our associates, their experiences as well as their continued engagement.

We support their growth by offering robust leadership development programs, role-based training, on-the-job training and other career opportunities at every stage of their tenure.

Designed to enhance the leadership capabilities of our people, we design and deliver optional programs to leaders across all departments that come together to learn and practice their management skills as well as identify opportunities to lead more effectively.

We support their growth by offering high-impact leadership development programs, role-based training, on-the-job training and other career opportunities at every stage of their tenure.

Designed to enhance the leadership capabilities of our people, we develop and deliver optional programs to leaders across all departments that come together to learn and practice their management skills as well as identify opportunities to lead more effectively.

The Elevate program for director-level and above associates works to solidify our talent pipeline and promote the success of the organization’s future leaders.

Our front-line leaders are supported through specific Learning and Development pipelines for corporate, wholesale and operations.

Our Learning and Development teams partner with key groups such as Sales, Operations, Transportation and Environmental Health and Safety to develop role-based training to drive greater productivity and safety.

We also offer associates additional learning and career development opportunities that extend from skills-based training deployed electronically through our BetterU learning system, to mentorship programs and career development discussions and beyond.

Our Learning and Development teams partner with key groups such as Sales, Operations, Transportation and Safety to develop role-based training, including Lean continuous improvement methodologies and AI training, to drive greater productivity and safety.

We also offer associates additional learning and career development opportunities that extend from comprehensive, flexible education benefits and skills-based training deployed in person and electronically through our BetterU learning system, to mentorship programs, such as Mentor Marketplace, and career development discussions and beyond.

Compensation and Benefits

Our compensation and benefits programs are designed to promote a culture of well-being and recognize our associates for their outstanding achievements and dedication to serving our customers and keeping them safe during even the most challenging of times.

We are committed to offering market competitive pay programs that reward high levels of performance and behaviors that challenge convention and drive company success.

Our short-term incentive programs are tied to the Company’s financial goals and are intended to align our eligible associates’ rewards with our financial success.

Long-term incentives, including restricted stock units and performance stock unit awards, are designed to attract and retain innovative leaders and align their financial interests with that of our shareholders and other stakeholders.

Long-term incentives, including restricted share units and performance share unit awards, are designed to attract and retain innovative leaders and align their financial interests with that of our shareholders and other stakeholders.

As part of our commitment to recognize our associates’ “whole self” – health, finances and overall well-being – we offer a comprehensive health and welfare benefit program to eligible associates providing a variety of medical, dental and vision options plus additional voluntary benefits like long-term disability and optional life insurance.

Additionally, we provide to eligible associates a leading edge, no-cost wellness program, paid time off programs including paid parental leave, an employee assistance program, 401(k) plan and a recently enhanced education assistance program.

Additionally, we provide to eligible associates paid time off programs including paid parental leave, an employee assistance program, a 401(k) plan and an education assistance program.

Inclusion and Well-being

In order to recruit, inspire and retain the most talented team at all levels that maximizes speed, agility, innovation, execution and performance from the Boardroom to our distribution centers, we pledge to promote inclusion and well-being for all by delivering high-quality benefits and programs that attract and nurture high performance in a safe and inclusive culture.

Our Board of Directors has a broad range of experience and represents a wide range of backgrounds and perspectives.

Our Board of Directors has a broad range of experience and represents a wide range of backgrounds and perspectives, and we strive to reflect that commitment across all levels of the organization.

We recognize that innovation thrives when there is unity and respect for all backgrounds and perspectives.

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Our Inclusion and Well-being council and seven associate-led Belonging and Innovation Groups (all of which are open to all associates) actively strive to create a workplace where all associates feel welcome and are motivated to reach their full potential.

We have revised policies and practices to better serve our workforce and business needs and developed a multi-pronged approach to educate and engage associates that includes open discussions on various dimensions of inclusion and well-being, a podcast, mental health awareness trainings on our associate platforms, targeted volunteerism, and campaigns encouraging respect and empathy.

In fiscal 2025, the Inclusion and Well-being team partnered with Safety and Operations to launch a Mental Health First Aid initiative, reaching all distribution centers, to teach leaders skills needed to recognize and respond to signs and symptoms of mental health and substance use challenges, as well as how to provide someone with initial support until they are connected with appropriate professional help.

Key contributions of our Belonging and Innovation Groups in fiscal 2026 included leading the Operations Leadership Development program and the launch of our new distribution center Spanish Essentials program, focused on equipping distribution center leaders with higher Spanish speaking employee populations with practical Spanish language skills for daily operations to strengthen communication, inclusion and safety in our distribution centers.

Our multi-pronged approach to educate and engage associates includes open discussions on various dimensions of inclusion and well-being, mental health awareness trainings on our associate platforms, targeted volunteerism, and campaigns encouraging respect and empathy.

We offer Mental Health First Aid training to teach leaders skills needed to recognize and respond to signs and symptoms of mental health and substance use challenges, as well as how to provide someone with initial support until they are connected with appropriate professional help.

In fiscal 2026, we expanded this program to all associates to increase access to mental health education and resources across the organization.

Creating a Safe Environment

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We continue to focus on the safety of our associates, customers, communities and consumers with increased safety measures.

We continue to be committed to continuous learning and improvement, and we believe in the power of learning from past experiences to enhance our safety system and performance, including through root cause incident analysis.

We also continue to invest in our safety brand and pledge, Every Moment Matters, which is designed to foster a culture of caring and doing the right thing.

This past year, we focused on continuing to make meaningful reductions in both Occupational Safety and Health Administration (“OSHA”) recordable incidents and lost time injuries (“LTI”), such as through Lean daily management, which has been implemented in 28 of our distributions centers and is strengthening our performance across safety, quality, delivery and cost metrics;

We continue to be committed to continuous learning and improvement, and we believe in the power of learning from past experiences to enhance our safety system and performance, relying on in-depth root cause incident analysis to address system issues.

We also continue to invest in our safety brand and pledge, Every Moment Matters, which is designed to foster a culture of integrating safety into everything we do.

• implementing Lean daily management in 44 of our distributions centers, strengthening our performance across safety, quality, delivery and cost metrics;

• investing in center ride pallet jacks, which offer reduced risk of injury compared to end ride pallet jacks;

• improving our root cause analysis process;

enhancing our safety management software solution;

completing internal and external audits and closing findings identified therein;

creating more comprehensive reporting on key performance indicators, including adding a new injury severity metric, and continuing to build upon our safety culture.

As part of our ongoing commitment to road safety, this year we have completed the installation of a video-based safety technology across our fleet.

This investment enhances public safety and driver protection, promotes real-time coaching, strengthens our ability to proactively reduce risk and contributes to safer roads for all.

Our efforts with our food safety and quality assurance (“FSQA”) program intensified as we focused on delivering value to our customers and consumers.

This included continuing on our path to creating a world-class food safety management system by creating Food Safety Fundamental Rules that are now part of our daily operations rhythms.

Furthermore, we enhanced our internal audit program by making all audits unannounced so that we could continue towards our goal of being audit ready every day.

Additionally, we created more comprehensive reporting on key performance indicators, invested in technology to allow for easier tracking of food safety incidents and proudly reached our milestone to have the last remaining eligible facilities SQF certified, thus promoting customer confidence in our food safety program.

• establishing a serious incident escalation and management process;

• strengthening our internal audit process;

• creating more comprehensive reporting on key performance indicators, including adding a new environmental permit compliance metric;

• continuing to build upon our safety culture.

As part of our ongoing commitment to road safety, we have evolved our use of AI video-based safety technology from implementation to a fully-integrated component of our fleet safety strategy, furthering its impact through data-driven coaching and performance management.

This technology enhances public safety and driver protection, promotes real-time coaching, strengthens our ability to proactively reduce risk and contributes to safer roads for all.

Additionally, we have enhanced driver development programs through the deployment of training modules, improving workforce capability and learning efficacy.

We continued to invest in our food safety and quality assurance (“FSQA”) program, reflecting our commitment to deliver value to our suppliers, customers and consumers.

Key components of this program include Food Safety Fundamental Rules that are part of our daily operations rhythms;

a robust internal audit program, including unannounced audits;

comprehensive reporting on key performance indicators;

technology that enhances tracking of food safety incidents;

and maintenance of SQF certification at all eligible distribution centers, promoting customer confidence in our food safety program.

Other key FSQA initiatives in fiscal 2026 included:

• enhancing environmental monitoring programs, strengthening preventative controls and supporting food safety, product integrity and regulatory compliance;

• implementing quarterly driver engagement and field observation initiatives to reinforce food safety practices, operational visibility and continuous improvement;

• strengthening recall response protocols through enhanced multi-channel communication capabilities, improving organizational readiness and response effectiveness;

• developing and implementing a refrigeration contingency framework, strengthening operational resilience, safeguarding product integrity and supporting business continuity during planned and unplanned refrigeration outages;

• expanding multilingual FSQA training resources, increasing accessibility and comprehension across a diverse workforce.

Overall product sales are fairly balanced throughout the year, although demand for certain products of a seasonal nature may be influenced by holidays, changes in seasons or other annual events.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business