Tony's Fine Foods Bolsters Distribution Operations Through Acquisition of Columbus Distributing

Acquisition further consolidates perishable foods distribution, allowing customers to conduct business more effectively in marketplace

Feb 03, 2010, 15:17 ET from Tony's Fine Foods

WEST SACRAMENTO, Calif., Feb. 3 /PRNewswire/ -- Tony's Fine Foods today announced that it has acquired Hayward, Calif.-based Columbus Distributing Inc., the perishable foods distribution division of Columbus Foods. The acquisition combines the strong product mix, distribution network, and 76-year-old, family-run heritage of Tony's Fine Foods with the unique product selection and industry experience of Columbus Distributing.

The acquisition of Columbus Distributing is the next step in Tony's Fine Foods' continued mission of pursuing efficient, service-oriented perishable food distribution partnerships with independent retailers and food service operators throughout the West Coast. It will further allow Tony's to meet the growing consumer demand for fresh, specialty foods, while providing the marketplace with the special handling and centralized distribution capabilities that it needs to thrive. Vendors and customers will benefit from greater product reach, comprehensive and consolidated distribution, and enhanced logistical and storage options that ensure products are delivered fresh, multiple times per week.  

"Tony's Fine Foods is a trusted leader in this marketplace and our purchase of Columbus Distributing will allow us to enhance the best-in-class service that our customers have come to expect from us," said Karl Berger, chief executive officer of Tony's Fine Foods. "The marketplace will benefit from a streamlined distribution model that delivers high-quality product, more frequently, through a single point of contact. We are adding value to the entire supply chain and helping our customers compete more effectively over the long-term."  

Following the purchase, there will be a four-month transition period ending on May 31, at which time all Columbus Distributing operations will be moved to West Sacramento, Calif. Most positions will not be immediately affected through the transition period while Tony's Fine Foods works to merge the two companies' operations and assess staffing needs. Resources will be evaluated while the company invests in new services and functions for sustainability and long-term growth.  

"The sale of our distributing company allows Columbus to focus solely on our deli and cured meats manufacturing business and allocate valuable resources to fund growth and innovation," said Ralph Denisco, chief executive officer of Columbus Foods. "After Tony's exits the Hayward Distribution facility, we will evaluate renovating the facility to create one of the country's leading deli and cured meat slicing operations, as much of our growth has been in pre-sliced, pre-packaged meats. We are also very excited about the opportunities that Tony's Fine Foods will provide our brands as they are distributed throughout Northern California."

SOURCE Tony's Fine Foods