SunOpta acquires assets of Snapdragon, Supreme Foods

NORVAL, Ontario-Reaching its objective to develop Canada's first national natural and organic foods distributorship, SunOpta Inc., here, acquired distributors Snapdragon Natural Foods Inc. and Supreme Foods Ltd., both in Toronto, in May.

"Sun Opta is rolling the Snapdragon (and Supreme) business into its other food distribution companies in our move to complete Canada's first national distributor focused on organic and natural products for both the independent and chain retail market segments," said Stephen Easterbrook, President, Sun-Opta Food Distribution Group, Toronto.

SunOpta acquired Supreme Foods, Toronto, May 1. Supreme specialized in certified organic, natural, kosher and specialty grocery products. The acquisition of Snapdragon's assets, with distribution centers in Toronto, as well as Montreal and Calgary, closed May 31.

"SunOpta is building the UNFI (United Natural Foods Inc., Dayville, Conn.) of Canada," said Easterbrook, comparing SunOpta to UNFI, a national natural foods distributor in the United States. "We have completed acquisitions in the past 18 months that have resulted in a national structure."

The Snapdragon asset purchase included inventory and current business. No liabilities were assumed.

With plans to merge the acquired businesses with SunOpta's existing operations, SunOpta signed an agreement to lease a 135,000-square-foot warehouse in Metropolitan Toronto to house its consolidated operations.

"The operations of Supreme Foods and Snapdragon will be consolidated into the 135,000-square-foot facility in January 2005, along with future potential acquisitions in the area," said Easterbrook. "The new facility has an expansion option of up to 180,000 square feet."

SunOpta, formerly Stake Technology, got its start in the grain and soy processing industry. The company began strategic growth into the natural and specialty food distribution business when it acquired Wild West Organic Harvest Cooperative Association in Vancouver, British Columbia, in November 2002, and Simply Organic, Toronto, in December 2002.

Addtional acquisitions occured in October 2003 and March 2004.

"SunOpta's distribution in Canada is unique in that we also distribute certified organic produce and fresh foods through our Pro Organics and Wild West Organic Harvest distribution centers" he said.

The 5,000 SKUs represented by SunOpta include brands such as Nature's Path, Hain/Imagine, Amy's Kitchen, Sunrich Organic Dairy Ingredients, Ceres, Muir Glen, Bob's Red Mill grain products,Blue Diamond, and Manischewitz.

Retail customers include Loblaws, Sobeys, A&P, Metro, Safeway, Federated Co-op, IGA, Thrifty Foods, Wild Oats Canada's Capers stores, Choices and Whole Foods Markets.

"Future acquisitions are planned to enhance our national presence and afford suppliers with maximum market penetration," said Easterbrook.

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