Caito Foods: Caito Foods grows after acquisition by SpartanNash

Business has been good and running smoothly at Indianapolis-based Caito Foods Service this year after acquisition by Grand Rapids, Mich.-based SpartanNash in January.SpartanNash also acquired Indianapolis-based Blue Ribbon Transport in the deal worth around $217.5 million."The acquisition hasn't changed our daily operations at all," said Tony Mitchell, vice president of sales, procurement and marketing for Caito Foods.On Nov. 8, SpartanNash announced a $106.6 million increase (5.9%) for its third-quarter net sales to $1.91 billion from $1.8 billion in third quarter 2016.The company attributed this bump to the Caito Foods acquisition, along with organic growth of 5.2% in food distribution and significantly improved sales at military commissaries.SpartanNash gained Caito Foods' produce distribution and fresh-cut produce business and also its 120,000-square-foot Fresh Kitchen facility, which is designed to process and package fresh-prepared foods.Third-party logistics company Blue Ribbon Transport also has several fresh processing and fresh food distribution centers around the country. Fresh-cut"The Fresh Kitchen facility is up and running this year, offering our customers meal-replacement options including salads, grilled chickens, wraps, sandwiches and pizzas," Mitchell said.Mitchell said Caito Foods grew business in 2017 in its manufacturing division, which includes the new Fresh Kitchen offerings and its fresh-cut produce products."The steady growth we've seen in fresh-cut produce through 2017 will continue into 2018," he said."It's a good growth tool for Caito Foods as fresh-cut produce is a convenient and healthy option for shoppers. And these products take the preparation labor out of the stores and lessen food safety concerns for retailers."Caito Foods' wholesale distribution business also has grown organically this year through its current customer base and picking up new business as well, Mitchell said.The same can be said for Caito Foods' organic produce products."We now have more stock-keeping units and overall volume in organics," Mitchell said."We've especially seen nice increases in organic salads."